Hundreds of mule accounts come to light in Wayanad

Hundreds of youngsters from Wayanad district are falling prey to mule account scamsters and are facing criminal charges for financial fraud across the country.

“At least 500 mule accounts have been identified in various banks in the district so far. However, at the rate more and more accounts are coming to light, the number may easily double,” says Shaju Joseph, Inspector at the Cyber Police Station, Wayanad. He says 32 mule accounts have been identified in one bank in Kalpetta.

Mule accounts are bank accounts that are being hired or purchased from the original account holder for money and used by others. Everything required to control the accounts, including passbook, ATM card, cheque book, and the phone number to which it is linked, are handed over to the purchaser. The accounts may then be used for financial frauds, which can be traced back only to the original account holder.

Recently, Ismail, 27, from Kambalakkad was arrested by the Nagaland police and taken to Kohima on charges of financial fraud. Mohammed Fanish,28, is also facing charges from the Dehradun police in a similar case for a transaction of ₹58,000 through his accounts. Transactions worth ₹32 lakh have been traced to the bank account of a youngster in Madakkimala.

“We have come across several account holders who face charges for financial frauds in northern and north-eastern States. Most of these accounts are controlled by Keralites residing in the Middle East or other countries. The money that reaches these accounts are immediately converted into dollar and transferred to other accounts,” says Mr. Joseph.

However, the youngsters who hold the accounts are not unaware of the consequences, he says. “Most of them know the implications. They are lured into this scam by middlemen who offer them ₹5,000 to ₹10,000 per account. The youngsters see it as an opportunity to make some quick money. Some of them are even offered commission for the transactions,” he says.

However, they realise the seriousness of the crime only when the police come knocking on their door. They use this money for momentary needs such as clothes or phones. Some may be using it on drugs also, says Mr. Joseph.

The police fear that the transactions through the mule accounts may be used for anti-national activities or terrorism.