Kochi, 15 July (H.S.):

The Kerala High Court has issued a strong warning against the growing use of 'money mule' bank accounts in online financial frauds, describing them as a serious threat to society and directing law enforcement agencies to take stringent action against account holders who knowingly allow cybercriminals to use their accounts for illegal transactions.

The observation came while dismissing a petition filed by a young woman challenging the freezing of her bank account by the police on suspicion that it had been used in a cyber fraud. The court found her explanation that she had no knowledge of how ₹3.5 lakh had been credited to her account to be highly suspicious.

During the hearing, the petitioner sought permission to withdraw the case. However, Justice M.A. Abdul Hakhim declined the request, observing that the account appeared to have been opened solely for facilitating cyber fraud. The judge directed the police to register an FIR against the petitioner under provisions relating to organised crime and conduct a comprehensive investigation into the matter.

The High Court emphasised that investigating account holders who provide banking facilities to cyber fraudsters is essential to tracing the movement of illicit funds generated through online scams. Such investigations, the court said, are crucial for dismantling organised cybercrime networks and identifying the masterminds behind financial fraud.

A 'money mule' is a person whose bank account, UPI ID or cryptocurrency wallet is used to receive, transfer or conceal money obtained through criminal activities. Cybercriminals increasingly rely on such accounts to move proceeds from fake investment schemes, online part-time job scams, drug trafficking and other illegal operations.

Authorities have warned that students and young people are often lured into renting out their bank accounts or digital payment credentials in exchange for small commissions, unaware that they are becoming part of money laundering networks. The High Court's ruling sends a clear message that individuals allowing their accounts to be used for such transactions could face serious criminal prosecution.

---------------

Hindusthan Samachar / Arun Lakshman