Hyderabad: In a paradigm shift in strategy against organised cybercrime, Hyderabad City Police have asked banks to abandon the practice of targeting customer base expansion and instead focus on having “zero mule accounts,” as per recent findings from the anti-fraud Operation Octopus.
The idea was pitched to bankers at a high-level bankers’ coordination meeting, which was held on April 23. The proposal by Police Commissioner VC Sajjanar involved setting up a twin challenge where the success or failure would hinge upon a bank branch’s ability to prevent cyber fraud and opening of mule accounts.
The meeting had participation from 75 representatives from 45 banks across Hyderabad. The police have arrested several officials of various banks involved in facilitating fraud through mule accounts.
The police said that banks’ negligence towards Know Your Customer (KYC) norms and their preoccupation with targets made them easy prey for organised fraudsters.
An official from the Reserve Bank of India and the top brass of Hyderabad police were present in the meeting.
The police also highlighted the growing role of transnational syndicates operating from countries such as Cambodia, Vietnam and the UAE, which rely on local intermediaries and, in some cases, insider collusion to siphon off funds from Indian victims.
Hyderabad banks to shift focus from volume to vigilance
Hyderabad banks have been directed to adopt zero tolerance towards cybercrime, strengthen due diligence, and deploy real-time monitoring tools such as Mule Hunter to detect suspicious activity. Strict disciplinary action, including blacklisting across the banking sector, was recommended against staff found complicit in fraudulent account openings.
In addition, branches have been asked to actively warn customers during high-risk transactions such as premature fixed deposit closures and large fund transfers, while promoting awareness through SMS alerts and in-branch campaigns.
The Hyderabad Commissioner also emphasised empathetic handling of victims, urging bank staff to guide them towards the national cybercrime helpline (1930) and official reporting platforms.
Follow on Twitter | Posted by Syeda Faiza Kirmani | | 
