Cybercriminals Exploit Mule Accounts to Establish Illegal Payment Gateways for Money Laundering

Officials have reported that the Union Home Ministry has issued a warning about illegal payment gateways. These gateways are being used by international cybercriminal gangs for money laundering through mule bank accounts. The criminals exploit bank facilities to launder money using shell company accounts and individual accounts.

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Recent police operations in Gujarat and Andhra Pradesh revealed that cybercriminals have established illegal digital payment systems. These systems use rented bank accounts to launder money from various crimes. Some identified gateways include PeacePay, RTX Pay, PoccoPay, and RPPay. According to a government statement, these services are operated by foreign nationals.

Illegal Payment Gateways and Their Operations

The Indian Cybercrime Coordination Centre (I4C) analysed information from state police investigations. It was found that criminals search for savings and current accounts of shell companies and individuals on platforms like Telegram and Facebook. These mule accounts are controlled remotely from abroad.

Using these mule accounts, illegal payment gateways are created for criminal syndicates. These gateways facilitate deposits on illegal platforms such as fake investment scam sites, offshore betting websites, and fraudulent stock trading platforms. The proceeds from these crimes are quickly transferred to other accounts.

Misuse of Banking Facilities

The bulk payout facility offered by banks is being misused for these illegal activities. As soon as crime proceeds are received, they are layered into another account using this facility. This misuse allows criminals to efficiently launder money without detection.

I4C has advised citizens against selling or renting their bank accounts or company registration certificates. Engaging in such activities can lead to legal consequences, including arrest. Banks have been urged to implement checks to identify misuse of accounts used for setting up illegal payment gateways.

The ministry's alert highlights the need for vigilance among citizens and financial institutions. By understanding the methods used by cybercriminals, individuals can better protect themselves from becoming unwitting participants in illegal activities.