Mule accounts, KYC lapses fuelling cyber fraud: Hyderabad Police

Highlighting the growing misuse of “mule accounts” and lapses in KYC processes following findings from the city police’s Operation Octopus investigation, Hyderabad Police Commissioner V. C. Sajjanar has written to the RBI seeking sweeping banking reforms to tackle cybercrime.

In a letter addressed to Sanjay Malhotra, Governor of the Reserve Bank of India, the Hyderabad Police Commissioner called for stricter accountability at the branch level and a comprehensive audit of KYC compliance across commercial banks. He noted that mule accounts, often opened using unsuspecting individuals’ credentials, have become central to organised cyber fraud networks.