- Indians are projected to lose over 0.7% of GDP to cyber fraud in the coming year, according to the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry.
- This loss is attributed largely to mule bank accounts.
- The I4C has identified 18 ATM hotspots in India for fraudulent withdrawals and indicated overseas ATM cash withdrawals using Indian mule account debit cards in locations like Dubai, Hong Kong, Bangkok, and Russia.
- International Scam Compounds: Scam compounds resembling call centres in Cambodia, Myanmar, Laos, and recently Azerbaijan, have become hubs for investment scams.
- The Home Ministry plans a meeting with the Union Finance Ministry and the Reserve Bank of India to address mule accounts.
- Banks are advised to monitor high-value transactions in low-balance accounts or accounts held by salaried individuals, as these are often used to move defrauded money overseas through cryptocurrency.
| Mule Bank Accounts: Mule bank accounts facilitate illegal transactions by receiving and transferring funds from unlawful activities. Often accounts are opened by individuals who offer their bank accounts for free, making detection difficult during the onboarding process. |
Dig Deeper: What is the mandate of I4C under the Home Ministry?
