Police sting reveals cybercrimes'' newest recruits in Kerala

Kochi | It was an ordinary Thursday morning at a nationalised bank in Maradu, Kochi, when a police team suddenly walked in and approached two college students who were completing the money withdrawal procedure.

To the surprise of bank employees, the officers quietly took the youngsters into custody.

The police later explained that the duo was being arrested as part of a statewide crackdown, codenamed “Operation Cy-Hunt”, and that the money they were withdrawing was linked to a large-scale cyber fraud racket.

Coordinated by the Cyber Operations Wing of the Kerala Police, Operation Cy-Hunt mobilised more than a thousand officers across the state in a single-day sweep.

By the end of the operation, 263 people had been arrested, 382 cases had been registered, and raids had been conducted at 714 locations.

Notices were also issued to 125 individuals to appear before the police for further questioning.

It is a phenomenon that points to a growing propensity for seeking wealth without regard for the law.

According to the Cyber Operations Wing, the drive helped uncover cyber scams worth nearly Rs 300 crore.

Police said the crackdown targeted individuals who had received or withdrawn money siphoned from victims across India through online job scams, fake trading platforms, and other forms of cyber fraud.

At the centre of the operation were what the police call 'mule accounts' — bank accounts rented out to cybercriminals for a commission.

Money defrauded from innocent people is transferred into these accounts, withdrawn using cheques or ATMs, and handed over to middlemen.

"Most of those arrested in Kochi are youngsters, especially college students," Kochi City Police Commissioner Putta Vimaladitya told PTI.

"We arrested three persons in a case registered at Eloor police station, all of them 21 years old and students of different educational institutions."

He said that in several cases, large sums were found in students’ accounts, and many had little idea where the money came from.

One of the accused had reportedly gained control of ten accounts belonging to fellow students. "They were told that the money came from online gaming platforms. The fraudsters lured them by promising easy money," the Commissioner said.

Considering the number of students involved, Kochi Police is planning to launch awareness campaigns at educational institutions and through residents’ associations.

"We have found that more students are getting involved in such illegal activities knowingly or unknowingly. They will be cautioned about the consequences," Vimaladitya added.

In a statement, the Cyber Operations Wing said those arrested included individuals linked to organised financial fraud networks who had either withdrawn defrauded funds or rented out their bank accounts for a commission.

Information obtained from the National Cyber Crime Reporting Portal flagged 2,683 individuals suspected of cheque-based withdrawals and 361 individuals suspected of ATM withdrawals.

Additional Director General of Police (Cyber Operations) S Sreejith told reporters here that Operation Cy-Hunt marked a proactive shift in the state’s cyber policing. "Usually, police investigations begin after a complaint is received. This time, we acted before victims even realised they had been defrauded," he said.

The drive was launched following the monitoring of suspicious bank accounts flagged by the national cyber portal. "Many accounts had been dormant for long periods and then suddenly saw large, unusual transactions. Such patterns clearly point to mule account operations," Sreejith said.

In Kalamassery, police reached the home of a 60-year-old woman after discovering several lakh rupees of suspicious transactions in her bank account. "She was unaware of it. Her son, who handled the account, is now absconding," a police officer said.

In another case at Kalady, police arrested a 40-year-old man who received Rs 76 lakh in 24 transactions in his bank account. "He withdrew the amount using cheques and ATMs and handed it over to another person who is now being traced," officials said.

Earlier this year, the Enforcement Directorate (ED) unearthed a massive racket in Kerala while probing money laundering linked to Chinese loan apps.

The agency’s Kochi unit arrested Sayid Muhammed M M of Kozhikode and Varghese T of Fort Kochi for arranging 479 mule bank accounts that facilitated transactions worth Rs 718 crore.

Investigators found that Sayid opened 289 mule accounts with transactions worth Rs 377 crore and received around Rs 2 crore in commission, while Varghese managed 190 accounts with transactions worth Rs 341 crore and earned Rs 70 lakh.

"Our probe revealed that these mule accounts, mostly belonging to youngsters, were used to layer proceeds of crime derived from cyber frauds. Some of these funds were converted into cryptocurrency and transferred to wallets abroad," an ED official said.

The agency also found that funds were routed through shell companies and later sent abroad under the guise of import payments. "While our investigation focused on Chinese loan apps, the same modus operandi is used in online trading, job, and extortion scams," the officer added.

Kerala Police data show that 34.8 per cent of cyber fraud cases reported this year involved online trading scams, while 33 per cent involved online job scams.

"Students see it as a harmless way to earn a quick commission. But once they are caught, they face criminal liability," a senior officer said.