The (RBI) has cautioned customers against allowing their bank accounts to be used by third parties for receiving or transferring money, warning that such arrangements are often linked to cybercrime and financial fraud.
The advisory, issued through the ‘RBI Kehta Hai’ financial awareness campaign, comes as regulators and law-enforcement agencies step up efforts to identify and curb money mule networks that help fraudsters move illicit funds through the banking system.
The central bank said customers should maintain exclusive control over their accounts and banking credentials, adding that individuals who knowingly allow their accounts to be used for unlawful transactions could face legal consequences.
Why regulators are focusing on mule accounts
For cybercriminals, obtaining stolen money is only one part of the operation. The bigger challenge is moving those funds without attracting attention.
This is where money mule accounts come in. Fraudsters often route money through multiple accounts before it reaches its final destination, making the transaction trail harder for investigators to follow.
Authorities have increasingly identified mule accounts as a critical link in online frauds, including phishing scams, fake investment schemes, identity theft, impersonation fraud, and so-called digital arrest scams.
The issue has gained prominence as continue to grow, enabling fraudsters to transfer funds across multiple accounts in minutes.
The scale of the problem
Recent data suggests that financial fraud remains a significant concern for the banking sector.
According to RBI data released in May, banks and financial institutions reported 10,114 fraud cases involving ₹48,021 crore during FY26. While the number of reported cases declined from the previous year, the amount involved increased sharply.
Separately, the Indian Cyber Crime Coordination Centre (I4C) has identified more than 2.73 million suspected money mule accounts since September 2024, according to information shared by the Ministry of Finance earlier this year.
Cybercriminals commonly use social media platforms, messaging applications and fake employment opportunities to approach individuals. People are often offered commissions for receiving money into their accounts and forwarding it elsewhere.
In some cases, individuals may not realise they are participating in a criminal network until their accounts are flagged by banks or law enforcement agencies.
RBI’s message to customers
The RBI has advised customers not to share account access, passwords, PINs, card details or one-time passwords (OTPs) with anyone. It has also urged people to be sceptical of requests involving fund transfers on behalf of strangers or offers that promise quick earnings with little effort.
As digital transactions become more widespread, regulators are increasingly emphasising that safeguarding is not only a cybersecurity measure but also a legal responsibility.