The Indian Cyber Crime Coordination Centre (I4C), under the Union Home Ministry, has issued a warning regarding unlawful payment gateways established by transnational organized cybercriminals using mule bank accounts. These illicit gateways enable “money laundering as a service,” posing a major threat to financial security.
According to the MHA, recent raids led by the Gujarat and Andhra Pradesh Police uncovered that international cybercriminals have set up illegal digital payment gateways using mule or rented accounts. This shadow network serves as a conduit for laundering profits from various cybercrimes. As reported by The Hindu on October 24, these mule bank accounts are a critical factor in online financial scams, potentially siphoning off up to 0.7% of the national GDP.
I4C data, cited by The Hindu, indicates that roughly 4,000 mule bank accounts are identified daily by investigative agencies.
The MHA notes, “Information from State Police Agencies and I4C analysis reveals that both current and savings accounts are procured via social media, particularly on Telegram and Facebook. These accounts, linked to shell companies or individuals, are remotely managed by foreign operatives.”
These mule accounts are then used to construct unauthorized payment gateways, facilitating deposits on illegal platforms, such as fake investment sites, offshore betting and gambling sites, and fraudulent stock trading platforms.
“Once crime-related funds are received, they are quickly transferred to another account. Bank-provided Bulk Payout facilities are frequently exploited for these operations,” the MHA added.
Among the gateways uncovered in this crackdown are PeacePay, RTX Pay, PoccoPay, and RPPay. Operated by foreign nationals, these gateways are believed to be significant players in the provision of Money Laundering as a Service.
The I4C has issued a strong advisory to citizens, cautioning against selling or renting their bank accounts, company registration certificates, or Udhyam Aadhaar Registration certificates to any entity. Any unauthorized funds in such accounts can lead to serious legal repercussions, including arrest. “Banks should implement checks to curb the misuse of bank accounts linked to illegal payment gateways. Citizens are urged to report any cybercrime incidents immediately via helpline 1930 or at www.cybercrime.gov.in,” the MHA emphasized.
published by dailybharat
