Daijiworld Media Network - Hyderabad

Hyderabad, Apr 19: In a major crackdown on organised cybercrime, the Hyderabad City Police have dismantled a pan-India fraud network under “Operation Octopus 2.0,” arresting 52 individuals—including 32 bank officials—across nine states.

Police Commissioner V. C. Sajjanar said the week-long operation involved 16 specialised teams that conducted coordinated raids across multiple states. The arrests include officials from several banks such as IndusInd Bank, Bandhan Bank, Bank of Baroda, Federal Bank, and IDFC First Bank, among others.

According to police, these officials allegedly played key roles in facilitating the opening of fraudulent or “mule” bank accounts, which were later used to route and launder money obtained through cyber scams. Fifteen account holders who knowingly allowed their accounts to be misused, along with five intermediaries responsible for arranging such accounts, were also arrested.

During the operation, investigators seized multiple items, including mobile phones, cheque books, digital storage devices, a laptop, and stamps linked to shell companies.

Officials revealed that the crackdown is part of a broader effort to curb a surge in cybercrimes such as investment scams, trading fraud, and so-called “digital arrest” scams—where victims are manipulated or intimidated into transferring money.

The case traces back to earlier findings by the Cyber Crime Police Station, which uncovered a network of around 350 bank accounts linked to nearly 850 cases nationwide, involving transactions worth approximately Rs 150 crore.

Building on the earlier phase, Operation Octopus–1—conducted in February across 16 states—had already led to 117 arrests. The latest phase specifically targeted insiders within banks suspected of enabling fraudulent account creation.

Police noted that the operation spanned states including Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Bihar, requiring close coordination with local law enforcement agencies.

Authorities also flagged serious lapses in due diligence and KYC processes, particularly in some private sector banks, which were allegedly exploited by cybercriminals to open accounts without proper verification.

Commissioner Sajjanar said the scale and coordination of the operation reflect a determined push to dismantle cyber fraud networks and hold not only perpetrators but also facilitators accountable.