Hyderabad Police bust pan-India cyber fraud ring; 52 held including 32 bank officials

Hyderabad (Telangana) [India], April 19 : The Hyderabad City Police have dismantled a pan-India cyber fraud network and arrested 52 persons, including 32 bank officials, in a week-long multi-state drive codenamed 'Operation Octopus 2.0', officials said.

The operation was carried out under the supervision of DCP (Cybercrimes) V Aravind Babu and ACP RG Siva Maruthi. It targeted organised syndicates involved in investment scams, trading frauds, and digital arrest scams, where victims were cheated through manipulation and intimidation.

Police said 16 special teams led by Inspector-rank officers were simultaneously deployed across Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Bihar. Under 'Operation Octopus 2.0', a total of 52 accused were apprehended, including 32 bank officials, 15 mule account holders, and five middlemen/aggregators.

Among those arrested was a Relationship Manager from Bandhan Bank, who allegedly colluded with fraudsters to open and operate fraudulent accounts. The mule account holders had knowingly allowed their bank accounts to be used for laundering illicit funds, while the aggregators procured accounts and moved funds to masterminds.

Seizures included 26 mobile phones, 14 cheque books, two pen drives, one laptop, and 21 shell company stamps.

The crackdown follows an investigation by the Cyber Crime Police Station, Hyderabad, which uncovered a nexus of 350 bank accounts linked to nearly 850 cases nationwide, with transactions totalling about ₹150 crore.

Operation Octopus 2.0, following the initial phase of Operation Octopus-1, was conducted in February this year. Under the initial phase, 32 police teams arrested 117 suspects across 16 states.

Police observed that private sector banks were predominantly facilitating the opening of mule accounts, pointing to "significant lapses in due diligence and KYC verification". In several instances, accounts were opened without proper verification of customer credentials, enabling misuse for fraud.

Hyderabad City Commissioner said that the Police have adopted a "Zero Tolerance" policy towards cybercrime.

"Anyone involved in such crimes, regardless of position or influence, will face strict legal action. Those facilitating cybercrime, including bank officials and mule account holders, will be dealt with an iron hand," he said.

Police added that the investigation is ongoing to identify higher-level operatives in the network and that Operation Octopus will continue as an ongoing initiative.

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