Gandhinagar (Gujarat) [India], June 1 : In a major push to safeguard the hard-earned money of its citizens, the Gujarat government, under the leadership of Chief Minister Bhupendra Patel, has intensified its crackdown on digital fraud through a series of high-impact police operations.
According to a release, aimed at ensuring that cybercriminals face the full force of the law, the state police have launched a multi-pronged offensive to dismantle criminal networks and provide a secure digital environment for the people of Gujarat.
As part of this comprehensive campaign, and under the guidance of the Chief Minister and the leadership of Deputy Chief Minister Harsh Sanghavi, a special operation was conducted across the entire state.
Led by the Gujarat Police's Cyber Center of Excellence (CCE), this operation involved taking action against "mule accounts," thereby unearthing cyber fraud amounting to a total of ₹2,289 crore across various cases, as per the release.
Mule accounts are bank accounts utilised by cybercriminals to receive, transfer, and launder funds obtained through fraudulent means. The individual holding such an account is referred to as a "money mule." Cybercriminals use these accounts to transfer money from one account to another.
The Gujarat Police launched this specific operation with the sole purpose of identifying such mule accounts and taking appropriate action against them. In the context of cybercrimes, mule accounts are utilised either knowingly or unknowingly.
The Gujarat Police and the Cyber Center of Excellence (CCE) conducted "Operation Mule Hunt 1.0" in 2025.
This operation involved the participation of all Police Commissioners, Range Heads, Inspectors from Local Crime Branches, and Cyber Police Stations. While maintaining daily oversight of the operation, the Headquarters monitored its progress by receiving regular progress reports. The Gujarat Police team collated data received through the Indian Cyber Crime Coordination Centre (I4C), the National Cyber Crime Reporting Portal (NCRP), the Coordination Portal, and the 1930 helpline.
Based on this data intelligence, nodal officers were appointed in every district, and a dedicated support team was established to address complaints received in the field. Furthermore, effective coordination was ensured by issuing directives to all banks regarding the real-time sharing of data. Thus, through data intelligence and effective coordination, the Gujarat Police has succeeded in achieving unprecedented results by striking at the very roots of criminal activity involving mule accounts.
'Operation Mule Hunt 1.0' has successfully dismantled a massive network of fraudulent activities, leading to hundreds of arrests and a staggering impact on illicit financial flows. According to official data, the intensive operation resulted in the registration of 565 FIRs and the arrest of 638 individuals involved in various layers of cybercrime.
The operation has exposed a vast web of criminality, identifying a total of 4,052 crimes, out of which 491 were specifically traced within Gujarat. Authorities confirmed that action was taken against 193 identified mule accounts, which served as the primary conduits for laundering proceeds from a massive financial fraud valued at ₹2,289 Crores.
Beyond the arrests, the operation has triggered a significant shift in the operational behaviour of cyber-syndicates, particularly in how they exit illicit funds from the banking system. Data indicates a sharp 75% overall reduction in cheque withdrawals. Most notably, monthly cheque withdrawals plummeted from ₹126 Crores to just ₹25 Crores, marking a decisive 80% decline in high-value manual extractions.
The crackdown has also severely constricted the "first-layer" of the fraud network--the initial accounts where victims' funds are first deposited. Between August and December 2025, there was a recorded 30% reduction in the number of these first-layer mule accounts. Furthermore, the physical withdrawal of cash via ATMs, a common tactic to erase the digital paper trail, saw a dramatic 66% reduction between September and December 2025.
With the objective of making this campaign against mule accounts more efficient and proactive, a risk-scoring system utilising Artificial Intelligence (AI) technology is being implemented by the Indian Digital Payments Intelligence Corporation (IDPIC) under the guidance of the Reserve Bank of India (RBI).
Under this system, every transaction will be categorised as Low Risk, Medium Risk, or High Risk, thereby enabling the identification of suspicious accounts. Based on these scores, various banks can initiate necessary action.
The IDPIC has been designated as the nodal agency responsible for this initiative. Furthermore, a registry named 'mulehunter.ai' has been established to facilitate the sharing of information regarding suspicious accounts among various banks.
Prime Minister Narendra Modi has consistently expressed concern regarding the rising incidents of cybercrime and has urged citizens to engage in digital activities with greater awareness and without fear, safeguarding themselves against various cyber offences such as "digital arrest."