Bhubaneswar:The arrest of two individuals in Capital City for allegedly renting out their bank accounts to cyber fraudsters has highlighted a critical vulnerability within the financial ecosystem. DCP Bhubaneswar, Jagmohan Meena led the Team to nab the culprits.
The accused have been identified as Prasana Behera (44), a school dropout from Bhubaneswar, and Rahul Pradhan (24), a science graduate from Cuttack.
They reportedly allowed scammers to use their accounts for illegal financial transactions in exchange for a 2% commission. This active complicity complicates fraud detection and prevention efforts.
This scheme facilitated an elaborate investment scam, channeling over ₹1.34 crore through more than 100 bank accounts across 11 states and union territories.
From a banking perspective, this incident underscores the persistent challenge of “mule accounts” – accounts used by criminals to launder illicit funds. While traditional mule accounts often involve unsuspecting victims whose details are misused, this case reportedly involved individuals knowingly participating for a 2% commission. This active complicity complicates fraud detection and prevention efforts.
Financial institutions face increased pressure to bolster their anti-money laundering (AML) and know-your-customer (KYC) protocols. The sheer volume of transactions (over ₹1.34 crore) and the widespread network of accounts involved indicate a sophisticated operation that demands enhanced vigilance. Banks must continuously refine their transaction monitoring systems to identify unusual patterns indicative of such schemes, including frequent, small-value transactions, rapid fund movements, or transactions with unusual beneficiaries.
For customers, this serves as a stark warning: renting out bank accounts, even for a seemingly small commission, carries severe legal consequences and contributes directly to financial crime.
Banks are urged to intensify public awareness campaigns about the dangers of becoming a money mule, emphasizing that account holders are legally responsible for the activities conducted through their accounts.
The ongoing investigation aims to identify other syndicate members and potentially compromised accounts. This incident reinforces the need for collaborative efforts between law enforcement and the banking sector to combat financial fraud and protect the integrity of the banking system.