Massive terror financing probe: J&K police crack down on 8,000 mule accounts, expose ₹209 crore phishing and fake trading racket

The Jammu and Kashmir Police has intensified its crackdown on a digital hawala network linked to terror financing, following the bust of a major white-collar terror module. Officials have placed over 8,000 bank accounts under scrutiny, suspecting that collected funds were funnelled into terrorist activities. Investigating agencies believe the handlers of the network are operating from across the border in four different countries.

Mule bank accounts have emerged as a major new front in cyber fraud, posing serious challenges for security and financial intelligence agencies. In a significant crackdown, authorities in Jammu and Kashmir recently uncovered a vast network of nearly 8,000 mule accounts, exposing a sophisticated money-laundering operation allegedly linked to international cyber fraud syndicates.

The operation marks a coordinated effort by central agencies and the Jammu and Kashmir Police to dismantle a system in which fraudulently obtained funds were routed through layers of bank accounts to obscure their origin and final destination.

Authorities have directed the J&K Police, banking institutions, and other law enforcement agencies to work in close coordination to identify, monitor, and immediately freeze newly created mule accounts. Investigations are now focused on tracing the intermediaries commonly known as mulers who recruit account holders, manage the network, and facilitate the movement of illicit funds across regions and, in some cases, across borders. Officials believe that identifying these handlers is key to breaking the backbone of the wider cyber fraud ecosystem.

''Around 7,000 to 8,000 accounts are currently under scrutiny due to suspicious transactions and questionable credentials. These accounts are being actively reviewed, and we have requested the department to freeze them while investigations are underway. We are examining potential links to terror financing. Our country has faced terrorism for years, much of it sustained through illicit funding channels. We are determined to disrupt and choke off these financial networks. There is serious concern that these accounts may have been used to funnel funds to terrorist organisations, '' said Tahir Ashraf Bhati, SSP Counterintelligence, Kashmir

In a separate major breakthrough, the Jammu and Kashmir Police recently constituted a Special Investigation Team (SIT) that uncovered a multi-crore phishing and fake trading racket run through fraudulent websites. Investigations have so far identified around 835 suspicious bank accounts, of which 290 verified accounts received approximately ₹209 crore from investors across India within the past one and a half months. Security agencies estimate that the total amount involved could exceed ₹400 crore after full scrutiny.

The scam allegedly involved layered fund transfers through accounts in Budgam, Srinagar, Ganderbal, and Baramulla, along with cryptocurrency conversions, QR code circulation via Telegram channels, and cross-border routing to conceal the money trail.

“In the past one and a half months, Ganderbal Police have been investigating a major web-based investment scam operating through fraudulent websites. These platforms falsely promised unusually high returns and were widely promoted through web browsers such as Google Chrome. Websites, including Paisavault, were used to lure unsuspecting individuals into investing their money. Our investigation has revealed transactions exceeding ₹2 crore in certain accounts, with funds being transferred outside the state and subsequently routed abroad. This is not a game or legitimate investment opportunity, but a well-organised online scam. The alleged mastermind, Ekant Yogdutt, also known as ‘Dr. Morphine,’ is a resident of Hisar, Haryana. He is believed to have developed foreign connections during his MBBS studies in the Philippines. The investigation has further uncovered the use of BPL account holders, approximately 200 ATM/debit cards, foreign currencies, and suspected involvement of certain bank employees. So far, eight individuals have been arrested. Authorities have identified the distribution of 575 QR codes and verified 290 bank accounts that collectively received ₹209 crore from investors across India. The total amount involved is expected to exceed ₹400 crore upon completion of the full scrutiny.” said Khalil Poswal, SSP Ganderbal.

Authorities have urged citizens not to rent out bank accounts and to report cyber fraud to the cyber-Police, while further investigation continues to trace funds and attach properties of the accused.