The Hyderabad Police have dismantled a large-scale cyber fraud network with links across multiple states, arresting 52 individuals—including a significant number of bank officials—in a coordinated crackdown under ‘Operation Octopus 2.0’.
Multi-State Operation Targets Insider Nexus
The arrests followed a week-long operation spanning Telangana, Andhra Pradesh, Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, and Bihar. Police teams focused on bank employees suspected of aiding fraudsters in opening mule accounts used to channel illicit funds.
Of those arrested, 32 are bank officials, along with 15 mule account holders and five intermediaries who allegedly acted as facilitators between the banking system and cybercrime networks. Investigators stated that the officials were not merely negligent but actively complicit in enabling fraudulent activities.
Link to Earlier Crackdown
According to Hyderabad Police Commissioner VC Sajjanar, the operation builds on a previous nationwide crackdown conducted in February under ‘Operation Octopus 1’. That probe uncovered approximately 350 bank accounts linked to around 850 cybercrime cases involving transactions worth nearly ₹150 crore.
In the latest phase, investigators shifted focus to the role of insiders within financial institutions.
Role of Bank Officials and Network Structure
Police found that the arrested bank employees, drawn from at least 10 financial institutions—including public sector banks—held positions ranging from relationship managers and clerks to KYC approvers and probationary officers. Notably, six officials were linked to the same private bank, indicating possible concentration within specific branches.
Authorities allege that these officials bypassed due diligence and compliance norms, enabling the creation and operation of fraudulent accounts. Mule account holders allowed their accounts to be used for layering and laundering illicit funds, while intermediaries sourced such accounts and ensured the smooth transfer of money across the network.
Rising Cybercrime Trends
The मामले reflect a broader trend of increasing cyber fraud cases, including investment scams, trading frauds, and so-called “digital arrest” schemes, where victims are coerced into transferring funds.
During the raids, police seized 26 mobile phones, 14 cheque books, 21 stamps, and two pen drives—items believed to have been used in managing the network’s operations.
Ongoing Investigation
Senior officials confirmed that the operation was conducted under the supervision of DCP (Cybercrimes) V Aravind Babu and ACP R G Siva Maruthi, with multiple specialised teams working in coordination.
Investigations remain ongoing, with authorities continuing to trace financial trails and identify additional suspects. More arrests are expected as the probe progresses.
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