Security agencies freeze 8,000+ mule accounts in J&K; officials flag funds may be exploited for anti-national activities

security agencies Jammu and Kashmir Detected and frozen more than 8,000 “mule accounts” in the last three yearsAccording to officials, these accounts form the financial backbone of global scam networks and can finance separatist and anti-national activities.Officials described these accounts as the “weakest but most important link” in the cybercrime chain, noting that without them, stolen money cannot be traced. CryptocurrencyNews agency PTI reported.Central security agencies have asked the Jammu and Kashmir police and other law-enforcement agencies to consult with banks to curb the rise of mule accounts and identify middlemen, commonly known as “mullers”, who facilitate these frauds.after National Investigation AgencyIn its 2017 crackdown on illicit money flows in the region, officials said anti-national elements may have shifted to a “digital hawala” model, where commissions earned by mule account holders could be used for activities against the country.A muller usually does not contact victims or send fraudulent links. Instead, officials said, their role is to arrange and maintain a steady supply of mule accounts for scammers while hiding their identities.Such accounts often involve ordinary people being lured in by promises of “easy commissions” and minimal risk. They are persuaded to give full control of their bank accounts along with net banking credentialsInvestigators found that a single scammer could be supplied with 10 to 30 Mule accounts at once. In several cases, accounts are opened in fictitious company names, enabling large transactions of up to Rs 40 lakh in a day without immediately raising the alarm.Officials said the money trail was deliberately complicated, with funds quickly transferred to multiple accounts and broken into smaller transactions to avoid detection.Law enforcement agencies assert that even if Mule account holders do not design scams or contact victims, they remain active facilitators of money laundering. “The entire scam ecosystem depends on these accounts. Without a destination for the money, the scam fails at the first step. Those who are renting out their accounts are not the only victims of the situation; They are the engines of crime,” said a senior official.A study by central security agencies has ordered individuals from countries such as China, Malaysia, Myanmar and Cambodia to create private crypto wallets for people in the Union Territories. These wallets are often set up using virtual private networks (VPNs) to avoid detection and do not require Know Your Customer (KYC) verification. J&K police have already suspended the use of VPNs in the Valley, noting that terrorists and separatists often use the technology to avoid tracking, PTI reported.