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Gujarat Police recently concluded Operation Mule Hunt 1.0, a statewide crackdown on cyber fraud that uncovered cyber fraud transactions worth approximately ?2,289 crore, led to 565 FIRs, 638 arrests, and action against 913 mule accounts linked to 4,052 cybercrime cases across India, including 491 cases within Gujarat. Building on this success, Gujarat launched Operation Mule Hunt 2.0 from June 2, 2026, for a more aggressive second phase targeting mule-account networks.

What are Mule Accounts?

A mule account is a bank account used to receive, transfer, and conceal proceeds of cybercrime. The person operating such an account is a "money mule." Transnational cybercriminals exploit accounts of shell companies and individuals as mule accounts, taking advantage of bulk payout facilities provided by banks. Account holders sometimes knowingly rent or sell access to their accounts in exchange for commissions, while others are unwitting participants.

Operation Mule Hunt 1.0: Execution

• The operation was led by Gujarat Police's Cyber Centre of Excellence (CCE), with support from police commissionerates, range offices, Local Crime Branch units, and cyber police stations across the state.
• Intelligence inputs were compiled from the Indian Cyber Crime Coordination Centre (I4C), the National Cyber Crime Reporting Portal (NCRP), the Samanvay coordination portal, and the national cybercrime helpline 1930. District-level nodal officers coordinated field response teams, while banks were brought into a structured framework for real-time sharing of transaction-related alerts.

Impact on Criminal Networks

The operation produced measurable disruption to cybercrime syndicates' financial exit routes. Monthly cheque withdrawals linked to suspicious transactions fell from ?126 crore to ?25 crore — an 80% decline. First-layer mule accounts, where fraudulent funds are initially deposited, fell by 30% between August and December 2025, and ATM-based cash withdrawals saw a 66% reduction. These figures indicate that targeting mule accounts directly weakens the operational infrastructure of cybercrime networks.

Institutional and Technological Response

To build systemic resilience against mule accounts, the Indian Digital Payment Intelligence Corporation (IDPIC) — under RBI guidelines — is implementing an AI-based risk-scoring system through a platform called mulehunter.ai. Under this framework, each banking transaction will be classified as low, medium, or high risk, enabling banks to proactively identify and act on suspicious accounts. IDPIC serves as the nodal agency for sharing intelligence on suspicious accounts across the banking system.

Broader Context

Cyber fraud through mule accounts represents a major threat to India's digital financial ecosystem. The I4C under the Ministry of Home Affairs coordinates national-level cybercrime response, while the 1930 helpline and NCRP serve as citizen-facing reporting mechanisms. The PMLA, 2002 and IT Act, 2000 provide the primary legal framework for prosecution in such cases.