"Give Your Bank Account, Earn Commission": How Cyber Fraud Money Moves Through Mule Accounts, and Every Side of the Story

When someone loses money to an online fraud, the first question is usually: where did my money go? The answer is rarely a single account. In most cyber frauds, the money is passed quickly through a chain of bank accounts, called mule accounts, before it is withdrawn or moved out of reach. Many of these accounts belong to ordinary people, often young people, students or job-seekers, who were offered a commission for "lending" their account.

This article explains how the money trail works and looks at it from every side: the fraudster, the person who lends an account, the victim, and the innocent account holder whose account is frozen.

A recent case from Haryana

In October 2026, Haryana Police arrested a 29-year-old man from Hisar district for allegedly lending his bank account to cyber fraudsters, according to a report in Outlook Money. A Gurugram resident had reported losing about Rs 1.08 crore in a fake stock-market investment scheme. Police say about Rs 3.74 lakh of that money was credited to the Hisar man's account, and allege that he withdrew cash or transferred the funds onward, keeping a commission each time. These are allegations at the investigation stage; whether any offence is proved is for the court to decide.

Side 1: the fraudster's playbook

Fraudsters do not want the victim's money sitting in an account that can be traced to them. So the money typically moves like this:

1. The victim pays, believing in an investment, a job offer, a refund, a "digital arrest" or some other story.
2. The money lands in a first account that belongs to someone else, a mule account.
3. From there it is split and passed on through further accounts, often within hours.
4. Finally it is withdrawn as cash or moved to places that are hard to trace.

Each extra account makes the money harder to follow, which is why fraud networks constantly look for new accounts.

Side 2: the person who "rents out" an account

People are drawn in with offers such as "earn money from home by lending your account", a "part-time job" that involves receiving and forwarding payments, or a fixed amount for handing over a bank kit, ATM card, SIM card or UPI access.

The law does not treat this as harmless. A person who knowingly lets their account be used to receive and move fraud money can be investigated and prosecuted along with the main fraudsters. Depending on the facts, this can involve offences under the Bharatiya Nyaya Sanhita, 2023 (such as cheating), the Information Technology Act, 2000, and in some cases money-laundering law. Their account is also likely to be frozen. A small commission can turn into a criminal case.

Side 3: the victim

For the victim, the money trail explains why speed matters so much. While the money is still moving through the chain of accounts, it can sometimes be put on hold before it is withdrawn. That is why the first steps should be:

1. Call 1930, the national cybercrime helpline, at once, with the transaction details.
2. Inform your bank through its official app or the number on your card or passbook.
3. File a complaint on cybercrime.gov.in and keep all screenshots and statements.

Money that is put on hold in the chain can later be released to the victim through the proper legal process. Our guide on what to do in the first 24 hours after losing money to online fraud explains these steps in more detail.

Side 4: the innocent account holder

Not everyone whose account receives fraud money is part of the fraud. Sometimes fraud money reaches the account of a shopkeeper, a seller or an ordinary person who had no idea where it came from. As the Outlook Money report notes, whether an account holder is complicit depends on whether they knowingly allowed the misuse.

Even so, an innocent person's account can be held or frozen while the trail is investigated. Under the Ministry of Home Affairs' standard procedure on cyber-fraud complaints, and the Reserve Bank of India's draft procedure on temporary debit holds described in that report, a hold is generally lifted when the account holder satisfactorily explains the transaction. If this has happened to you, see our page on bank accounts frozen by the cyber cell.

How to stay safe

• Never lend, sell or share your bank account, ATM card, cheque book, SIM card or UPI access, whatever commission or "job" is offered.
• If unknown money appears in your account, inform your bank promptly and do not withdraw or forward it.
• Keep records of genuine business receipts, so you can explain any credit if asked.
• Talk to younger family members about these offers. Students and job-seekers are frequently targeted.