HDFC Bank files police case on 'money mules'

The money mule scam has reached Indian shores. Banks have noticed instances of fraudsters based overseas, posing as global payment companies, luring gullible people into joining them as "money transfer agents" and using their bank accounts to route ill-gotten money.

The cyber crime cell of the Mumbai police has begun investigations on the basis of a complaint by HDFC Bank, the country's second largest private sector bank.

A couple of other private sector banks have also come across the use of some of their account-holders as money mules for inward and outward transfer of fraudulently obtained money, but the names could not be confirmed.

HDFC Bank's chief information security officer, Vishal Salvi, said the bank had helped nab the money mule following a complaint by a customer that he has been a victim of phishing.

The bank accounts of money mules are used to transfer funds via phishing, an internet-based fraud that steals information like account numbers and net-banking passwords.

"The police are now investigating the case to find the fraudsters behind the fraud who are the ultimate beneficiaries," Salvi said.

The account-holders, unknowingly working as money mules, regularly receive funds in their accounts and receive instructions on forwarding the money received minus their commission to some accounts in foreign countries, which are closed after short periods.

These account-holders fall for quick and easy money but are unaware that acting as a mule is illegal.

The complaint by HDFC Bank follows soon after the Reserve Bank of India's (RBI's) warning, over a week ago, advising members of the public not to fall prey to fictitious offers for release of cheap funds claimed to have been remitted by overseas entities to banks in India or RBI.

It had urged members of the public not to make any remittance towards participation in such schemes or offers from unknown entities.

Money mule scams are common in countries like the US and the UK. India is now on the fraudsters' radar possibly more because of liberalisation of outward capital flows, a senior banker said.

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WHERE THERE'S A MULE...

A money mule is key to every successful phishing attempt

Fraudsters send random emails to individuals offering work as money transfer agents

The money mule is the first to get caught when the transfers are noticed

Fraudsters lure people by promising them good commissions on the amount transferred to an overseas account

The overseas fraudsters close their account and elope