Synopsis: Puducherry Cyber Crime Police say they have unearthed a large-scale cyber-fraud network allegedly run from inside an engineering college. Students reportedly sold bank accounts to criminals, who laundered proceeds through India and converted funds to cryptocurrency abroad — a racket linked to an estimated ₹90 crore scam.
Engineering College Turns into Alleged Cyber-Fraud Hotspot
Puducherry’s Cyber Crime Police have uncovered an alleged cyber-fraud network reportedly operating from within an engineering college campus. According to the police, the ring is linked to a major fraud — valued at roughly ₹90 crore — and involved a mix of student “mule” accounts, local cash-outs and international cryptocurrency conversion.
How the Case Emerged
The investigation started when two engineering students, Dinesh and Jayapratap, discovered their bank accounts had been frozen and approached police. They had earlier handed their account details to a fellow student, Harish, who is now named as an accused. Police allege Harish collected account details from more than 20 students and some members of the public.
Detailed Breakdown — How the Fraud Allegedly Worked
Students and other individuals were reportedly offered money to provide their bank account details. In many cases the accounts belonged to young adults with limited digital footprints, making them attractive to fraudsters.
Step 2 — Receipt of Fraud Proceeds
According to investigators, victims of online scams were tricked into sending money to these mule accounts. The mule accounts acted as temporary repositories for stolen funds, obscuring the trail back to the original perpetrators.
Step 3 — Layering and Local Cash-Outs
Funds in mule accounts were partly withdrawn in cash (local withdrawals) and partly routed through multiple intermediate transfers to other bank accounts to create complex transaction patterns. Police say at least ₹7 crore was withdrawn through the identified accounts.
Step 4 — Aggregation & International Transfer
After local layering, money was aggregated and routed through channels that moved value out of India — investigators allege conversion to cryptocurrency via networks operating in countries such as Dubai and China. This step converts traceable bank transfers into crypto, making recovery and tracing harder.
Step 5 — Conversion to Cryptocurrency
Conversion into cryptocurrency (using crypto exchanges, conversion services or P2P networks) allows fraud proceeds to cross borders quickly. Once in crypto, funds are harder for authorities to recover and can be mixed further to hide origin.
Who Was Involved — Roles & Motivations
- Students (mules): Provided accounts in exchange for payment. Often lacked awareness of legal risk.
- Local coordinator(s): Allegedly collected accounts and managed local withdrawals (Harish is named in police reports).
- Organised fraudsters: The alleged masterminds who generated scam proceeds and directed the money flow out of India.
- Crypto conversion partners: Overseas contacts or services that accepted rupee transfers and delivered cryptocurrency in return.
Evidence Seized by Police
Police carried out searches and seized multiple items used in alleged operations, including:
- Cash: ₹5 lakh (seized locally)
- Cheque books: 171
- ATM cards: 75
- Mobile phones: 20
- Computers & laptops
- Bank passbooks & credit cards
- Vehicle: Hyundai Verna
Scale & Financial Flow — Why This Is Serious
Police say the racket is connected to a larger scheme estimated at ₹90 crore. The use of multiple student accounts as temporary repositories served two main purposes for fraudsters:
- Obfuscation: Moving money through many small, seemingly legitimate accounts reduces immediate suspicion and complicates forensic tracing.
- Rapid cash extraction: Funds could be cashed out locally before investigators could freeze accounts, enabling quick dispersal to other networks.
How Victims Were Targeted (Typical Scam Techniques)
- Phishing & Social Engineering: Victims were tricked into sharing banking credentials or authorising transfers via deceptive messages or spoofed websites.
- Fake investment/trading platforms: Offers of high returns that required upfront transfers.
- Impersonation: Fraudsters posing as bank officials or support staff to solicit OTPs or approve transactions.
Potential Legal & Criminal Implications
- Those who knowingly allowed their accounts to be used for receiving scam proceeds may face charges under sections related to money laundering, criminal conspiracy, and fraud.
- Organisers handling cross-border conversion to crypto may be subject to additional offences, including violations of foreign exchange and anti-money-laundering laws.
- Students who cooperated unwittingly should seek legal advice; courts have in many cases considered the level of knowledge and intent when deciding charges and relief.
How Such Fraud Can Be Prevented — Practical Advice
- Do not share bank details: Never transfer account credentials, cheque books or ATM cards to others.
- Refuse offers for ‘easy money’: Payments for “renting” accounts are often a gateway to criminal liability.
- Use KYC-verified services only: Prefer regulated exchanges and payment platforms for transfers and conversion.
- Monitor accounts: Check statements regularly; enable transaction alerts.
- Report suspicious approaches: Inform campus authorities and local police if fellow students solicit account details.
- Educate students: Colleges should run awareness drives on cybercrime risks and legal consequences.
What to Do If You Were a Mule Account Holder
If you realise your account was used as a mule:
- Contact your bank immediately and freeze the account if necessary.
- Gather all communication and payment receipts related to the arrangement.
- Approach the nearest Cyber Cell or police station to explain the situation and provide evidence that you were coerced or misled.
- Seek immediate legal advice — an experienced lawyer can help negotiate with investigators and explain your level of involvement.
Conclusion
The Puducherry case underscores how quickly ordinary people — including students — can become entangled in sophisticated cyber-fraud networks. The alleged scheme combined human recruitment (mule accounts), local cash-outs and cross-border cryptocurrency conversion to move and hide illicit proceeds. Preventing such exploitation requires awareness, institutional action by colleges, and robust policing to trace and disrupt financial flows early.
📌 Key Takeaway
Never share your bank account details or payment instruments. Offers to “rent” accounts in exchange for money are illegal and can lead to serious criminal charges. If approached, report immediately to police and seek legal counsel.
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