Hyderabad Police Chief Tells Banks: Stop Mule Accounts, Protect Customers

The meeting, which was chaired by the Commissioner, was co-attended by M Srinivasulu, IPS, Additional Commissioner of Police (Crimes & SIT), and Chinmoy Kumar, Regional Director, Reserve Bank of India. The operation was conducted under the guidance of V Aravind Babu, DCP (Cyber Crimes), and RG Siva Maruthi, ACP (Cyber Crimes).

The coordination meeting was attended by 75 representatives from 45 public and private sector banks. Participants included: Regional Managers, Zonal Managers, General Managers, Deputy General Managers, and Nodal Officers

The Commissioner recommended the introduction of a twin-challenge framework to reorient bank branch priorities away from account-opening targets and towards citizen safety and institutional integrity. He strongly advocated that both these challenges should be embedded as formal Key Performance Indicators (KPIs) at the branch level, with branches achieving compliance to be formally recognised and rewarded by higher officials of the Bank, the release said.

No customer of the branch should fall victim to cybercrime. Zero cybercrime victims is the measurable target -- to be monitored via NCRP complaint data linked to the branch. No mule account should be opened at the branch. Strict KYC compliance, enhanced due diligence, and real-time monitoring are the operational requirements underlying this target, the Commissioner said, as per the release.

VC Sajjanar emphasised that bank managements must not treat the volume of account openings as a performance metric."Branches that prioritise targets over diligence are the primary entry points for fraud networks. Safe customer and zero mule account outcomes -- not account volumes -- must define branch performance," he said.

"Banks must adopt a policy of zero tolerance towards cybercrime at every level of the organisation -- from frontline staff to senior management; Key Performance Indicators (KPIs) for branches must incorporate monitoring of NCRP complaints attributed to the branch, with proactive remediation expected; Bank staff must demonstrate empathy and offer prompt, structured support to customers who have fallen victim to cyber fraud -- including guiding victims to the national helpline (1930) and the cyber-crime portal (cybercrime.gov.in)," he said.

Furthermore, Strict disciplinary action must be taken against KYC verifiers found involved in fraudulent account openings, accompanied by periodic forensic audits of accounts opened by flagged officials.

The Commissioner provided a detailed briefing on the operating methods of cyber fraud syndicates currently active across India. These networks are primarily headquartered in countries including Cambodia, Vietnam, and Dubai, and engage intermediaries within India to procure bank accounts by colluding with bank officials -- particularly KYC Verifiers -- to facilitate the siphoning of funds from Indian victims, the release stated.

The briefing underscored the transnational and organised nature of these networks, and the critical role that insider banking complicity plays in enabling them.

The Hyderabad City Police reiterated its commitment to safeguarding the financial well-being of citizens and to ensuring that those involved in cybercrime -- including those who enable it from within the banking system -- are brought to justice. The Commissioner urged all banks to collaborate closely and proactively with law enforcement, and affirmed that Operation Octopus will continue as an ongoing, evolving initiative until organised cyber fraud networks are comprehensively dismantled.

- ANI