HYDERABAD — Police in Cyberabad have arrested four individuals, including a branch manager of Jubilee Hills Mercantile Co-operative Urban Bank, for allegedly operating mule bank accounts using forged documents. The accused are suspected of enabling cyberfraud operations by opening accounts linked to fake business entities.

The Fraud Scheme

Jawwad Qadri Rifai and Mohammed Naushad, in search of quick money, are said to have colluded with Mohd Anas Khan and others to create and operate fraudulent bank accounts. According to police, the group rented a shelter in Pahadi Sharif and fabricated a rental agreement to open a current account at the Jubilee Hills branch. The account, affiliated with Yes Bank, was opened with the assistance of the branch’s sales manager and branch manager.

Police stated that the group provided the fraudsters with ATM cards, cheque books, passbooks, SIM cards, and internet banking access. An investigation revealed that Rs 6,67,565 was credited into the account in October 2025 through online fraud. The accused received commissions for their involvement, while the bank officials facilitated the account’s operation. The group later went into hiding, and police are now investigating whether they opened more than 30 mule accounts in the same branch.

Victim Loses 20 Lakh in Digital Fraud

In a separate incident, a 76-year-old retired engineer from KPHB lost Rs 20.07 lakh in a digital arrest fraud. The victim received a call from someone claiming to be from the Central Bureau of Investigation (CBI), who threatened to arrest him for money laundering. The fraudster allegedly sent fake documents, including letters purportedly from the Mumbai Crime Branch, which were later deleted.

The victim was asked to transfer money for verification, with assurances that it would be refunded. Due to the threats, he transferred the amount and later realized he had been scammed. He then lodged a complaint with the police, describing the incident as a digital arrest scam.

Significance of the Fraud Cases

The cases highlight the growing threat of cyberfraud in India, particularly in the banking sector. Officials said that the involvement of bank employees in such schemes poses a significant risk to the integrity of financial systems. The use of mule accounts, which are used to launder money and facilitate online fraud, has become a growing concern for law enforcement agencies across the country.

According to police, similar cases have been reported in other states, including Maharashtra and Tamil Nadu, where fraudsters have exploited weaknesses in bank procedures to open accounts under false pretenses. The Telangana police have been working closely with the Reserve Bank of India (RBI) to strengthen internal controls and prevent such frauds.

Experts warn that the use of fake documents and forged rental agreements to open bank accounts is a common tactic used by cybercriminals. The RBI has issued guidelines to banks to verify the authenticity of documents and ensure that account opening procedures are strictly followed.

The recent arrests in Telangana come at a time when the government is pushing for stricter regulations on digital transactions and online banking. The National Payments Corporation of India (NPCI) has also been working with banks to enhance security measures and reduce the risk of cyberfraud.

The investigation into the Telangana case is ongoing, with police working to identify the full extent of the fraud. They are also looking into whether other bank officials were involved in the operation. The case has also raised concerns about the need for better employee training and stricter internal audits within banks to prevent such incidents.

According to the police, the group had operated the accounts for several months before being caught. The investigation is expected to take several weeks, with more arrests potentially being made in the coming days.