Fraudsters Open Mule Accounts Using Fake KYC With Gay Abandon

Hyderabad: Fraudsters are creating bank accounts with false Know Your Customer (KYC) documents, and then lending the accounts for use by cyberfraudsters.

According to police, the scammers employ two methods to open fraudulent savings accounts in banks. In the first method, they use entirely forged KYC documents.

“This is mostly done by fraudsters who have accomplices inside the bank. The insider can get it approved without any trouble,” said cybercrime inspector Anjaiah. He added that as all the documents are fabricated, it is difficult to catch them.

In the second method, the fraudsters target unsuspecting individuals in rural areas and use their KYC documents to open bank accounts. The victims, who are often unaware of the implications, are contacted by police after tracing them from the bank account details.

A bank official said “They are usually paid money to submit their KYC documents to create an account. The scammers use their credentials for the mobile number and other details but for the KYC details they use the rural villagers’ details.”

Similarly, fraudsters also create current accounts under fake identities. In addition to the forged KYC documents, they also attach bogus company documents. These shell companies allow fraudsters to operate large financial transactions.

Recently, police arrested four scrap dealers from Suchitra. They created multiple bank accounts with fake KYC. The group defrauded to the tune of `16 crore out of which `1.62 crore was frozen.

The money channelised through these ‘accounts’ often originates via trading frauds, investment frauds, courier and other cybercrimes. The funds are disbursed to international fraudsters, while the handlers take a cut of 10-15 per cent for every scam.