India is facing a sharp rise in digital fraud and global analytics firm FICO has raised serious concerns about the growing threat from social media scams and mule bank accounts. These have now become the top fraud risk for banks across the Asia Pacific region. Supporting this warning, Indian authorities have also stepped up action. The central bureau of investigation (CBI) recently arrested several people under Operation Chakra-V, a crackdown on networks that operate mule bank accounts used to move stolen money.
As per data shared by the Union government in Parliament, India lost Rs22,845.73 crore to cybercriminals in 2024 alone. That year saw a record 3.63mn (million) or 36.37 lakh financial fraud incidents, a jump of 206% compared to 2023. The figures underline the urgent need for everyday users and institutions to stay alert and protect themselves from these fast-growing digital threats.
Scams, Not Hacks, Are Now the Bigger Danger
According to FICO's recent poll of senior banking executives across Asia Pacific, 69% now see scams and mule accounts as the biggest fraud threat, overtaking traditional hacking and unauthorised transactions.
What makes these scams more dangerous is that victims willingly transfer the money, often tricked by fake job offers, online romance, or bogus investment deals. Once the money is sent, it is quickly routed through mule accounts—bank accounts opened using fake or incomplete know-your-customer (KYC) documents—making it very hard to trace or recover.
CBI’s Crackdown: Mule Bank Accounts under the Scanner
Earlier this month, in a major nationwide operation, the agency raided locations across seven states and arrested three key suspects accused of running mule bank accounts for cybercrime gangs. These coordinated raids, part of Operation Chakra-V, CBI’s ongoing drive against online financial fraud, were carried out in Delhi, Bihar, Madhya Pradesh, Kerala, Punjab, Andhra Pradesh and Rajasthan.
During the searches, CBI teams seized KYC documents, mobile phones, bank records and detailed transaction logs. Investigators believe this evidence could help uncover a much larger network of more than 850,000 mule accounts, spread across 700 bank branches. These accounts are suspected to have been used to move money from scams such as phishing, UPI frauds, fake investment offers and even digital arrest scams. (
Read: 8.5 Lakh Mule Accounts in Over 700 Bank Branches, CBI Conducts Nation-wide Search at 42 Locations)
A formal case was registered on 25 June 2025, naming 37 people, including mule account-holders, agents, middlemen and even bank employees accused of helping open fraudulent accounts by bypassing KYC rules. Just weeks earlier, the CBI had arrested ten others during raids at 40 different locations in a similar crackdown.
Social Media: Gateway to Scams
FICO’s latest report reveals that social media platforms are now the top source of scams, with 52% of banks naming them as the biggest threat. Messaging apps like WhatsApp and Telegram follow close behind, flagged by 35% of banks.
Cybercriminals regularly use platforms like Facebook, Instagram, TikTok and Telegram to:
• Promote fake work-from-home or cryptocurrency investment offers
• Pose as government or bank officials to gain trust
• Run romance scams or blackmail victims through sextortion tactics
• Recruit people to become money mules by offering ‘easy money’ for renting out bank accounts
Many people who hand over their account details, knowingly or unknowingly, end up becoming part of a money laundering network, putting themselves at risk of criminal charges.
Operational Gaps: Why Banks Struggle To Keep Up
Even though the threat of scams is growing, many banks are struggling to respond effectively due to internal challenges.
According to FICO’s survey:
• 46% of banks say their systems are burdened with siloed data, meaning different departments don’t share vital fraud information
• 28% report poor visibility across channels, making it hard to track scam activity in real time
• 13% say they lack integration with external fraud detection systems that could help spot suspicious behaviour faster
“Scams move quickly and often go undetected,” said Dattu Kompella, managing director (MD) for Asia Pacific at FICO. “Banks need real-time systems and a joined-up approach to spot fraud early. Without breaking down internal silos, they will always be one step behind.”
Who Pays When You Are Scammed?
FICO’s survey also showed that banks are divided on how to handle scam-related losses:
• Only 14% believe customers should always be fully reimbursed
• 50% say banks should only compensate if it’s their fault
• 36% support a shared responsibility between banks and customers
This split reflects a difficult reality: many victims do not realise they are being scammed until it is too late and because the payments are authorised by the users themselves, fraud detection systems cannot always block them.
How Can You Stay Safe from These Scams?
As cybercriminals become more sophisticated, staying alert is your best defence.
Here are some simple but important steps to protect yourself from social media scams, fake jobs and money mule traps:
1. Never share your bank details, one-time passcodes (OTPs), or passwords over phone, email, or social media — even if the caller claims to be from your bank
2. Avoid investment offers that promise guaranteed or very high returns — these are often fake
3. Don’t click on suspicious links sent via WhatsApp, Telegram, SMS, or email — they may lead to phishing or malware
4. Never let anyone use your bank account — renting or sharing it can make you a partner in crime and land you in legal trouble
5. Verify job offers and recruiters, especially if you are approached online — fake job scams are on the rise
6. Turn on multi-factor authentication (MFA) for your banking and UPI apps — this adds an extra layer of security
If you spot or fall victim to a scam, report it immediately — call the 1930 cybercrime helpline or visit cybercrime.gov.in
Being cautious online isn’t optional anymore — it is necessary for everyone to not just survive but even to stay afloat in the digital age!
Having said that, FICO’s findings and CBI’s sweeping crackdown highlight a disturbing shift in cybercrime, where social engineering, digital trickery, and financial laundering now intersect across common apps and everyday banking channels. From fake job offers to online investment traps, fraudsters are weaponising social media and exploiting loopholes in the financial system to deceive and drain unsuspecting victims.
Tackling this new-age crime wave will need a united effort from banks, law enforcement, regulators, tech platforms — and you, the user. In this battle, awareness is just as vital as enforcement.
Stay Alert. Stay Informed. Stay Safe!
