Jammu and Kashmir mule accounts bust: Security agencies have uncovered an expansive network of “mule accounts” operating in Jammu and Kashmir, which officials describe as the financial backbone of global cyber scam networks
POONCH MIRROR NEWS DESK FEBRUARY 15, 2026
NEW DELHI/SRINAGAR, FEB 15: Security agencies have uncovered an expansive network of “mule accounts” operating in Jammu and Kashmir, which officials describe as the financial backbone of global cyber scam networks. The development has sparked serious concerns that proceeds routed through these accounts could be channeled to fund separatist and anti-national elements in the Union Territory .
Official sources revealed that over the past three years, more than 8,000 such accounts have been identified and frozen, exposing a sophisticated money-laundering ecosystem. Agencies have described these accounts as the “weakest yet most crucial link” in the cybercrime chain, as they enable the conversion of stolen money into untraceable cryptocurrency .
Central security agencies have directed the Jammu and Kashmir Police and other law enforcement bodies to collaborate closely with banks to curb the proliferation of these accounts. The directive also includes a focus on identifying middlemen, known as “mulers,” who facilitate these financial frauds .
Officials suspect that following the National Investigation Agency’s (NIA) stringent crackdown on illicit fund flows in the region in 2017, anti-national elements may have pivoted to a “digital hawala” model. In this new framework, commissions paid to mule account holders are feared to be funnelled into activities against the state .
The Mechanics of a ‘Muler’
A “muler” typically does not engage directly with scam victims. Instead, their role is covert and critical: they arrange and maintain a steady supply of mule accounts. These accounts are used by scammers to receive and transfer stolen funds without revealing their own identities .
These accounts often belong to ordinary individuals lured by the promise of “easy commission” and reassurances of minimal risk. Victims are persuaded to hand over full control of their bank accounts, including net banking credentials, under the pretext that they will be used briefly as “parking accounts” .
A single scammer can be supplied with 10 to 30 such accounts at a time. In many instances, accounts are opened in the names of fictitious companies, enabling large transactions of up to ₹40 lakh in a single day without immediately raising red flags .
The money trail is deliberately convoluted. Stolen funds are rapidly shifted through multiple accounts and broken into smaller transactions to evade detection. By sharing their credentials and accepting commissions, account holders knowingly provide the “financial infrastructure” for transnational crime .
“The entire scam ecosystem depends on these accounts. Without a destination for the money, the scam fails at the first step. Those renting out their accounts are not just victims of circumstance; they are the engines of the crime,” a senior official stated .
Crypto and VPN Links
A detailed study by central agencies has identified individuals in countries including China, Malaysia, Myanmar, and Cambodia directing people in Jammu and Kashmir to create private cryptocurrency wallets. These wallets are frequently set up using Virtual Private Networks (VPNs) to avoid detection and often bypass Know Your Customer (KYC) norms .
In response, the Jammu and Kashmir Police has already suspended the use of VPNs in the valley, citing their utility for terrorists and separatists seeking to avoid surveillance . The crackdown on these digital tools is part of a broader strategy to dismantle the financial networks supporting terror activities in the region . (AGENCIES)
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