CBI Arrests Two Bank Officials for Opening Mule Accounts Linked to Cyber Fraud

The Central Bureau of Investigation (CBI) has arrested two bank officials for their alleged involvement in opening and operationalising mule accounts that were later used for large-scale cyber frauds, officials said on Tuesday.

The arrested accused include the then Assistant Manager of Canara Bank, Patna, and the then Business Development Associate of Axis Bank, Patna. According to the CBI, the two officials acted in conspiracy with organised cybercriminal networks and played an active role in facilitating fraudulent fund transfers through mule accounts.

During the investigation, CBI analysed digital devices and gathered substantial evidence indicating that the two bankers not only helped in opening and activating the mule accounts but also guided cyber fraudsters on conducting money mule transactions. Investigators have also found evidence suggesting that the officials received quid pro quo for their role in the conspiracy.

CBI further revealed that the arrested bankers advised cybercriminals on how to evade system-generated red flags, thereby enabling uninterrupted movement of fraud proceeds.

Earlier, the CBI had conducted searches at 61 locations across the country, arrested 13 accused, and filed charge sheets for offences under relevant provisions of the IPC/BNS and the Prevention of Corruption Act in connection with the same case.

The two bank officials were arrested on December 24, 2025, from Varanasi in Uttar Pradesh and Betia in Bihar, respectively. They are being produced before the jurisdictional court after obtaining transit remand.

The agency stated that the role of other bank officials linked to the opening and operation of mule accounts is still under investigation and further action is likely as the probe progresses.

The crackdown is part of the Government of India’s ongoing efforts to combat cybercrime, with a special focus on dismantling the financial infrastructure that enables such offences.