A recent operation in Gujarat targeting cyber-enabled financial crime uncovered a massive Rs 2,289 crore fraud associated with mule bank accounts. Conducted from December 1 to December 31, 2025, under the name ‘Operation Mule Hunt 1.0’, the initiative involved various police units across districts, aiming to identify and disable accounts used for illicit money transfers.
Authorities focused on cracking down on “mule accounts,” which are utilized to receive, transfer, or launder money acquired through cyber fraud. These accounts serve as conduits for moving illegal funds through multiple layers, complicating detection and recovery processes. The operation resulted in the registration of 565 FIRs, 638 arrests, and actions against 913 mule accounts.
The enforcement action also led to the identification of 4,052 cybercrime-related cases, with 491 cases specifically within Gujarat. By leveraging data integration and inter-agency cooperation, the operation successfully targeted mule account networks spanning different states. Notably, the crackdown significantly reduced suspicious transaction activities in the banking system, with a substantial decline in cheque-based and ATM withdrawals reported.
Regulatory bodies are now enhancing technological monitoring of suspicious financial activities to combat cybercrime risks effectively. The Reserve Bank of India (RBI) has proposed the implementation of AI-based systems to classify transactions by risk levels, aiding in the early detection of potential fraud. Moreover, the establishment of mulehunter.ai and the involvement of the Indian Digital Payment Intelligence Corporation (IDPIC) signify a concerted effort to combat cyber fraud and strengthen preventive monitoring systems nationwide.
