CBI Uncovers Massive Cyber Fraud Using Mule Accounts: Bank Officials Under Investigation

The Central Bureau of Investigation (CBI) is set to question bank officials under suspicion for their alleged involvement with cybercrime syndicates in laundering money through 8.5 lakh mule accounts across the nation. The scam highlights grave systemic lapses within the banking sector, according to agency officials.

Over a two-month inquiry, the CBI detected failures in generating Suspicious Transaction Reports (STRs) despite numerous accounts displaying activity above the monetary limits. The omission illustrates deficiencies in identifying suspicious transactions. The FIR suggests bank officials inadequately assessed financial crime risks, failing in Customer Due Diligence measures.

The investigation unveiled that these mule accounts were unwittingly or deliberately used for laundering the proceeds of digital frauds, often through deceptive means. The CBI's report addresses these financial discrepancies, citing cases where accounts were opened with counterfeit documents. Enhanced due diligence, particularly in high-risk areas, was neglected despite RBI guidelines.

(With inputs from agencies.)