Bank accounts frozen in cyber crime cases: Hyderabad police issue advisory
HYDERABAD: The Hyderabad cyber crime police have issued an advisory explaining why bank accounts are being frozen in cyber crime investigations and what account holders should do to get them unfrozen.
In a press note, V. Aravind Babu, deputy commissioner of police, cyber crimes, said bank accounts are often frozen when they are found to be linked, directly or indirectly, to proceeds of cyber fraud.
Police said accounts may be frozen if cyber fraudsters gain control of them under the pretext of offering business loans and then use them to commit online scams. Accounts are also flagged in cases involving cryptocurrency trades, where fraudsters route illegal money into a bank account to buy USDT or other crypto assets.
Business establishments have been advised to verify the identity of buyers and the source bank accounts from which payments are received, as funds linked to cyber crime cases can result in account freezes. Money received through online gaming or betting platforms, fake investment apps and illegal instant loan apps is also treated as suspicious and can trigger action by multiple police authorities.
The advisory added that receiving money from unknown persons can expose account holders to similar risks, as such funds may be linked to cyber fraud.
Legal risks of sharing bank accounts
Police warned that cyber criminals frequently target students, unemployed youth, drivers and daily wage workers, promising easy income in exchange for access to bank accounts. Such approaches are often made through messaging platforms like Telegram and WhatsApp.
Allowing others to use a personal bank account makes the holder a “money mule”, a serious criminal offence. The account holder is legally responsible for all transactions, even if they were not carried out personally, police said. Offenders can face arrest and prosecution under provisions of the Information Technology Act, the Bharatiya Nyaya Sanhita and the Prevention of Money Laundering Act.
Once an account is flagged, it can also affect credit scores, future loans, employment prospects and passport or visa applications. Police said claiming ignorance is not a valid legal defence.
What to do if an account is frozen
If a bank account is frozen, account holders should visit their home branch or the nearest branch to obtain details of the police authority that issued the freeze. In cases where multiple freezes have been imposed, details of all concerned police authorities should be collected.
Police advised account holders to contact the respective police stations and submit requests for unfreezing along with supporting documents such as Know Your Customer records, bank statements and explanations for disputed transactions. After due verification, police authorities issue unfreeze notices to banks, following which the accounts are restored.
Citizens have also been advised to close unused or dormant bank accounts and report any unusual transactions promptly.
Police urged the public to report anyone seeking bank account details to the 1930 cyber crime helpline or through the national cyber crime reporting portal at cybercrime.gov.in.
