Lucknow: A Hub for Cyber Fraud Mule Accounts and International Money Laundering Network

Lucknow youths are unwittingly fueling a global cyber fraud network by allowing their bank accounts to be used for transactions. Local facilitators route illicit funds into cryptocurrency through unregulated peer-to-peer networks on the TRC-20 blockchain. Police investigations have tracked over Rs 5 crore in laundered funds in just two months, with all funds converted into USDT and sent abroad.

Lucknow youths are unwittingly fueling a global cyber fraud network by allowing their bank accounts to be used for transactions. Local facilitators route illicit funds into cryptocurrency through unregulated peer-to-peer networks on the TRC-20 blockchain. Police investigations have tracked over Rs 5 crore in laundered funds in just two months, with all funds converted into USDT and sent abroad.

The scam operates by luring young people with promises of easy money. Ajay, a 24-year-old restaurant waiter from Old Lucknow, was one such victim. He was offered Rs 20,000 to allow a crypto trader to use his bank account for a day's transaction. Unbeknownst to him, large sums of money were withdrawn and sent abroad, leaving him with no trace of the funds.

The network involves dozens of mule accounts belonging to young men and women from Lucknow. Many work in restaurants, small shops, or contractual jobs; others are college students. Lured by commissions ranging from Rs 10,000 to Rs 30,000, they knowingly lend their accounts to local facilitators, who route cyber fraud proceeds into cryptocurrency, mainly USDT, through unregulated peer-to-peer networks on the TRC-20 blockchain [1].

The operations are coordinated on encrypted Telegram channels run by Chinese handlers or their proxies in the Chinese language. Local recruiters collect account details and documents, often avoiding proper KYC or using forged papers. On transaction days, mule account holders are escorted to banks to withdraw cash immediately after large NEFT, RTGS, or IMPS transfers. The cash is then handed to crypto brokers, who convert it into USDT using decentralized, non-KYC wallets. Crypto wallets like Binance were found preferred choices [1].

The funds come from a range of cybercrimes in India: online investment frauds, fake job or task schemes, sextortion, and bogus trading platforms. Victims' payments are funnelled into mule accounts before disappearing into the blockchain - beyond the jurisdiction of any single country [1].

The phenomenon also ties into the darker side of the global cybercrime economy: cyber slavery rackets in Southeast Asia. Thousands of Indians are trafficked or lured abroad with fake job offers, then forced to work in scam factories targeting victims in India and elsewhere - feeding proceeds back into networks that rely on mule accounts at home [1].

While Lucknow police have cracked multiple such cases and identified the pattern, officials admit the scale and sophistication make detection difficult. The combination of encrypted communication, decentralized crypto wallets, and disposable bank accounts leaves little paper trail [1].

The Uttar Pradesh Police and the Indian Cyber Crime Coordination Centre (I4C), a dedicated unit of the Union Ministry of Home Affairs, have drawn up a joint action plan to strengthen the state's cybercrime response. At a high-level meeting chaired by DGP Rajeev Krishna on August 6, officials agreed to set up a dedicated Cyber Crime Centre, create a special unit for offences against women and children, identify fraud hotspots, and deploy trained tech-savvy personnel. Public awareness drives will also be expanded [1].

Ajay, now a cautionary tale, warns his friends never to "rent out" their accounts. "I thought it was just extra cash," he says. "Now I know it was crime - and I'm lucky I got a second chance."

References:
[1] https://money.rediff.com/news/market/lucknow-mule-accounts-fuel-cyber-fraud-network/31729220250810
[2] https://www.businessinsider.com/tornado-cash-roman-storm-trial-partial-mistrial-2025-8