In one of the largest crackdowns on organised cybercrime, the Hyderabad Police have dismantled a sprawling fraud network operating across multiple states, arresting 52 individuals — including 32 bank officials — for their alleged role in facilitating financial scams.
The week-long operation codenamed ‘Operation Octopus-2’, saw 16 special teams conduct coordinated raids across nine states—Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Bihar, Andhra Pradesh, and Telangana. Officials described the operation as one of the most extensive actions against cybercrime networks involving insiders from the banking sector.
The mission was led by Cyber Crime DCP V Aravind Babu and ACP RG Shivamaruthi, with teams executing simultaneous searches across multiple locations. According to investigators, several bank officials were complicit in the fraud, allegedly opening mule accounts without proper verification and bypassing mandatory KYC norms.
Hyderabad Police Commissioner VC Sajjanar said the crackdown specifically targeted insiders enabling such crimes. “A major operation titled Operation Octopus-2 was launched to dismantle an organised cyber fraud network operating across the country. Sixteen special teams conducted coordinated raids in nine states,” he said.
Police revealed that these mule accounts were used by cybercriminals to route and layer illicit funds siphoned from victims. Investigations uncovered a massive financial trail involving nearly 350 bank accounts linked to around 850 cybercrime cases nationwide. Authorities estimate that the network facilitated fraud worth approximately Rs150 crore.
Officials said the rise in such cases is tied to the growing prevalence of investment scams, fake online trading platforms, and so-called “digital arrest” frauds—where victims are threatened and coerced into transferring money.
Among those arrested are 32 bank officials from various institutions, 15 mule account holders, and five middlemen who acted as facilitators by supplying accounts to fraudsters.
During the raids, police seized multiple incriminating items, including mobile phones, cheque books, digital storage devices, a laptop, and stamps linked to shell companies used in the operation.
Authorities noted that the success of the operation was made possible through extensive coordination with law enforcement agencies across states, reflecting a high degree of planning and execution.
This operation builds on the earlier Operation Octopus-1, conducted in February this year across 16 states, which resulted in 117 arrests. While the first phase targeted broader cybercrime networks, the second phase focused specifically on bank officials aiding the creation of mule accounts.
Commissioner Sajjanar reiterated a zero-tolerance approach towards cybercrime, warning that strict action would be taken against anyone found complicit, including banking personnel. He also highlighted that lapses in KYC verification — particularly in private sector banks — are being exploited by fraudsters to open fraudulent accounts.
Police have urged citizens to remain vigilant and report cyber fraud immediately to improve the chances of recovering lost money. Victims are advised to call the national cybercrime helpline 1930 or file complaints through the official portal promptly, as reporting within the “golden hour” is critical to preventing further movement of stolen funds.
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