A recent Enforcement Directorate (ED) investigation has revealed a surprising and shocking case. Nearly Rs 331 crore of illegal transactions were found flowing through the bank account of a poor Rapido bike driver. The most astonishing part? The driver had no idea his account was being used in this way.
ED officials discovered that the account was being operated as a ‘mule account’ to hide and move illegal money. The funds reportedly came from an online betting app and were even used to pay for a high-profile destination wedding in Udaipur.
This case brings back an important question: What exactly is a mule account and how do criminals use it?
What is a mule account?
The word ‘mule’ usually refers to an animal that carries loads from one place to another. Similarly, a mule account is a bank account used by criminals to carry and move illegal money from one place to another.
In simple words, a mule account is a bank account that cybercriminals and money launderers use to hide, transfer and ‘clean’ illegal earnings, such as money from betting, drugs or online fraud.
How does it work?
1. Money deposit:
Criminals first deposit their illegally earned money into a mule account.
2. Moving the money:
The money is then quickly transferred in small amounts to several other mule accounts. This makes it very hard for agencies to trace the original source.
3. Withdrawal:
Finally, the money is withdrawn through ATMs, converted into cryptocurrency like Bitcoin or moved through digital payment platforms.
Who becomes the target?
Cybercriminals usually target financially weak individuals, daily wage workers, farmers, delivery boys, rickshaw drivers or app-based riders like Rapido drivers. These people often do not have deep knowledge of banking rules or digital fraud.
Sometimes the account owners agree for a small commission. But many times, as seen in this case, the owners do not even know that criminals are secretly using their accounts by misusing their documents.
The Rapido driver case shows that mule accounts have become a major tool not just for cyber scams but also for large money-laundering networks in India. It highlights the need for greater awareness and stricter checks to prevent innocent people from becoming victims.
