Cybercrime in India: Fraudsters use impersonation and mule accounts

Law enforcement agencies across India are reporting a surge in sophisticated cyber fraud, including WhatsApp impersonation, digital arrest scams, and the use of mule bank accounts.

In several instances, fraudsters have successfully impersonated company executives via WhatsApp to trick employees into transferring large sums through the Real Time Gross Settlement (RTGS) system. Notable cases include a manufacturing firm in Chennai losing Rs 1.90 crore and an accountant in Nagpur losing Rs 1.30 crore. In Odisha, two brothers were arrested for using a public service center to steal funds by capturing customers’ biometric data and OTPs.

Authorities are also targeting the infrastructure of these crimes. In Bhubaneswar, three individuals were arrested for providing mule accounts to fraudsters, facilitating the theft of Rs 3.84 crore. Meanwhile, the Delhi Police successfully intervened in “digital arrest” scams, rescuing senior citizens from fraudsters posing as government officials and preventing losses of Rs 1.53 crore.

In a related legal development, the Madhya Pradesh High Court issued guidelines regarding bank account freezes. The court ruled that if a suspicious transaction is identified, authorities should ideally freeze only the disputed amount rather than the entire account, to protect the rights and livelihoods of account holders.