Cyber Probe Freezes Bank Accounts

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A growing number of ordinary citizens are facing severe financial distress as bank accounts are being frozen during cybercrime investigations across India. Police and cyber agencies, while tracing fraudulent money trails, are reportedly freezing accounts linked to suspicious transactions — even when account holders have no direct connection to the original cyber fraud.

Cyber criminals are now using a new tactic to mislead investigators by transferring small amounts such as ₹500 or ₹1,000 into random bank accounts. Once these accounts become part of the transaction chain, they fall under the cyber investigation system and are temporarily frozen, bringing daily financial activities of innocent citizens to a complete halt.

Cyber police investigations follow a layered transaction tracking method. The account directly receiving the fraud amount is treated as Layer-1. Money transferred further moves into Layer-2, Layer-3 and additional layers. During this process, multiple accounts are frozen as a precautionary measure.

However, cyber fraudsters are now deliberately complicating investigations by sending small amounts into unrelated accounts. Though the account holders have no involvement in the fraud, their accounts still get flagged in the transaction chain and are blocked during the probe.

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Many citizens discover the issue only after sudden restrictions on withdrawals, UPI payments or salary transactions. Banks later inform them that an unknown transfer into their account triggered the freeze.

Citizens Facing Mental And Financial Stress

After receiving complaints, cyber police forward account details to the concerned investigating agency or police department that initiated the freeze. Accounts are unfrozen only after verification by the investigating officer. Until then, affected citizens are forced to suffer financial disruption and severe mental stress.

Experts warn that cyber criminals are increasingly exploiting loopholes in the banking ecosystem, making it essential for citizens to stay alert about every incoming transaction.

What Citizens Should Do If Their Account Gets Frozen

If a bank account is suddenly frozen, citizens are advised not to panic. They should immediately contact the bank and seek details about the suspicious transaction responsible for the restriction.

People should then submit transaction details, bank statements, ID proof and a formal complaint to the nearest cyber police station or report the issue through the National Cyber Helpline 1930. Delay in reporting often results in longer account freeze periods.

Experts also recommend regularly checking SMS alerts, email notifications and mobile banking statements. Any unknown amount credited into the account should be immediately reported to the bank in writing instead of being ignored or spent.

Rising Use Of Mule Accounts In Cyber Crimes

Investigations have revealed a sharp rise in the use of mule accounts — bank accounts operated in another person’s name — during cyber fraud activities. Fraudsters often lure citizens with money offers or misuse accounts without the knowledge of the account holder.

Students, unemployed youth and small business owners are increasingly becoming soft targets for such misuse. In several cases, account holders remain completely unaware that their accounts are being used in cybercrime networks.

Ignoring Small Transactions Can Be Dangerous

Many people casually assume unexpected credits of ₹500 or ₹1,000 are cashback rewards, recharge refunds or online payment adjustments. Cyber experts warn that fraudsters are intentionally using such small transactions to manipulate investigation trails.

In several cases, account holders fail to notice these deposits for days. Authorities are urging citizens to frequently monitor passbooks, bank statements and SMS alerts to avoid becoming accidental victims in cybercrime investigations.

“To trace the money trail in cyber fraud cases, accounts linked to suspicious transactions must be examined. As a precautionary measure, some accounts are temporarily frozen. Citizens should immediately report unknown transactions to banks and cyber police.”
— Ravikiran Nale, Police Inspector, Cyber Police Station