CIK raids 22 locations across Kashmir

Srinagar, Jan 7: Counter Intelligence Kashmir (CIK) on Tuesday conducted raids at multiple locations across Kashmir as part of a major crackdown on organised cybercrime and suspected terror-financing linked to mule bank accounts, officials said.

CIK officials said that the searches were carried out in Mehjoor Nagar, Bemina, Parimpora, Rajbagh, and Samarbugh areas spanning the jurisdictions of Saddar, Parimpora, Nowgam, and Shergari Police Stations, in connection with investigations into suspicious financial transactions.

A CIK Baramulla team raided the residence of Ghulam Nabi Pala, 50, son of Sunaullah Pala of Hamdaniya Colony, Bemina.

Pala is serving as a head constable in the J&K Police and is posted at Police Lines, Batmaloo.

Another CIK team, with assistance from Police Station Nowgam, searched the residence of Shakeel Ahmad Gadhanji, son of Bashir Ahmad Gadhanji, of New Colony Samarbugh.

Separately, a CIK Kupwara team raided the residence of Umer Imtiyaz Beigh, 26, son of Abdul Rashid Beigh, a businessman from Abu Bakar Colony, Parimpora.

Two additional raids were conducted in the Shergari area of Srinagar, with one team searching the residence of Shahid Tariq, son of Tariq Ahmad Bhat, while another raiding the residence of Zamruda, wife of Feroze Ahmad Bhat, in Kursoo, Rajbagh.

In another operation, a CIK team searched the residence of Rameez Ahmad Khan, 30, son of Shakeel Ahmad Khan, a street vendor residing at House No 95, Sector 3, Shamsabad, Bemina.

The search was conducted in connection with FIR No 06/2025 registered at Police Station CIK.

CIK officials said mobile phones were seized during the raid.

They said the raids were conducted after CIK intensified its offensive against a sophisticated and well-organised network involved in operating mule bank accounts to launder proceeds from cyber frauds, illegal online gaming, betting rackets, and other unlawful activities.

The officials said that acting on specific and credible intelligence inputs, CIK registered FIR No 06/2025 under Sections 66(C) and 66(D) of the Information Technology Act, 2000; Sections 303, 308, 314, 316(2), 318(4), 336(3), 340(2), and 61(2) of the Bharatiya Nyaya Sanhita, 2023; and Section 13 of the Unlawful Activities (Prevention) Act, 1967.

The case has exposed what CIK officials described as a well-entrenched financial crime syndicate posing a serious threat to national economic security and digital safety.

Investigations revealed a carefully coordinated conspiracy in which accused persons, allegedly working in collusion with local and outside operatives, exploited the bank accounts of innocent, vulnerable, and economically weak individuals by converting them into “mule accounts”.

They said that these accounts were used as temporary channels to route large volumes of illicit money generated from cyber frauds, banned online gaming and betting platforms, and fake investment and trading applications.

CIK officials said the illegally generated funds are suspected to have been further channelled into terror financing and other activities prejudicial to the sovereignty and integrity of the country.

According to them, the syndicate operated through systematic violations of banking norms, misuse of KYC procedures, registration of non-existent business entities on the Udyam portal to open accounts, allotment of virtual account numbers, identity theft, impersonation and complex money-laundering techniques designed to conceal the origin and final destination of criminal proceeds.

The officials said cybercriminals typically initiate fraud through phone calls, SMS, WhatsApp or Telegram messages, as well as social media and search-engine advertisements.

They said that posing as Police officers, bank or RBI officials, loan agents, job recruiters or investment advisers, they lure victims into scams involving fake online shopping offers, bogus trading platforms, online gaming traps, “digital arrest” threats or fraudulent KYC and SIM-block warnings.

The CIK officials said that the victims are coerced into transferring money via UPI, net banking or cards to so-called “safe” or “verification” accounts.

They said that in many cases, fraudsters obtain OTPs, PINs, or passwords, allowing them to gain complete control over victims’ accounts.

The officials said that a typical cyber-fraud transaction begins with money being siphoned from the victim’s account into a first mule account, which retains a small commission.

They said that the funds are then rapidly split and moved through multiple mule accounts across different banks and states.

The CIK officials said that the money is eventually consolidated into shell companies or fake payment processors using bogus invoices or gambling and trading labels, before being withdrawn in cash, converted into cryptocurrency or transferred to overseas accounts.

They said that this layered structure ensures that only disposable mule account holders surface initially, while the masterminds remain concealed.

The officials said that the investigation has uncovered a systematic recruitment model targeting students, unemployed youth, small shopkeepers, daily wage earners, and villagers.

They said that the recruits are lured with offers like “work from home”, payment processing jobs, foreign remittance handling, and easy commission-based income.

The CIK officials said that the trust is built using fake websites, documents, and registration numbers, followed by account takeovers through the sharing of SIM cards, ATM cards, UPI PINs, and internet banking credentials, or by opening new accounts under syndicate control.

They said that accounts are quickly abandoned once flagged and replaced with new recruits, creating both witting and unwitting money mules.

The officials said that during preliminary investigations, 22 suspects operating in the Kashmir Division were identified.

They said that after obtaining search warrants from the Special NIA Court in Srinagar, CIK conducted simultaneous searches at 22 locations, including 17 in Srinagar, three in Budgam, and one each in Shopian and Kulgam.

The CIK officials said that the searches led to the seizure of digital devices and financial records considered crucial to the investigation.

They said, so far, 22 individuals had been detained for questioning to determine their roles and linkages with cyber frauds, illegal online gaming and betting platforms, and suspicious financial transactions.

Officials said the investigation was at an early stage and further details were awaited, with more arrests and disclosures likely as the probe progresses.

The CIK reiterated its resolve to dismantle organised criminal syndicates, disrupt their financial pipelines, and take firm action against economic offences that threaten national security. Authorities warned that misuse of banking systems, whether knowingly or unknowingly, would invite strict legal action and urged people to remain vigilant and report suspicious offers or transactions promptly.