Fraudsters Hijack Dormant Accounts for Money Laundering

Cyber Crimes

Posted by AI on 2025-10-05 10:34:38 | Last Updated by AI on 2026-06-25 13:01:08

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In a shocking revelation, dormant bank accounts with low balances are becoming prime targets for cybercriminals, who exploit them as temporary parking spots for illicit funds. Recent incidents in Hyderabad and Jammu and Kashmir have exposed a sophisticated scheme where fraudsters siphon off crores from unsuspecting victims, only to swiftly transfer the money through a web of accounts, often within minutes.

The modus operandi involves luring victims with lucrative investment opportunities, then directing them to transfer funds to seemingly legitimate accounts. In one case, a stockbroker lost Rs 2.5 crore, which was swiftly moved to 1,100 different accounts in just half an hour. Similarly, a mobile phone accessories dealer in Jammu and Kashmir unknowingly hosted Rs 1.98 crore in his account for a brief period before it vanished into 38 other accounts.

These incidents raise serious concerns about the vulnerability of inactive accounts and the ease with which fraudsters manipulate victims. Cyber law expert Advocate Pankaj Bafna emphasizes the need for heightened bank vigilance, questioning why such suspicious transactions go unnoticed. He suggests that a standard operating procedure for investigations could help tackle these crimes more effectively.

The fraudsters' tactics are sophisticated, involving the creation of multiple recipient accounts using stolen identities, often of economically disadvantaged individuals. Chartered Accountant Naresh Dharia reveals that these accounts are meticulously prepared in advance, often in the names of unsuspecting innocent people. As the scams evolve, authorities must adapt their strategies to protect both individual account holders and the broader financial system from these cunning cybercriminals.

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