In a massive crackdown on financial crime, the Hyderabad Police uncovered a pan-India cyber fraud network on Sunday, April 19, by arresting 52 individuals,
including 32 bank officials across nine states. This mission, titled 'Operation Octopus 2.0', was launched to separate the internal link between banking professionals and cybercriminals. The accused took advantage of loopholes in the system and opened fake (mule) bank accounts. Using these accounts, they helped fraudsters steal nearly Rs 150 crore from people across the country through investment scams and “digital arrest” scams. Building on earlier efforts, Operation Octopus 2.0 focused on the banking system, which was being used to move illegal money. Hyderabad Police Commissioner V. C. Sajjanar said 16 special teams carried out raids at the same time in states like Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Bihar.
The week-long operation focused on:
- 32 Bank Officials: Accused of bypassing KYC norms to open fraudulent accounts.
- 5 Mule Account Holders: Individuals who provided their credentials for money laundering.
- 5 Middlemen: The bridge between the bank staff and the criminal masterminds.
How the Cyber Fraud Network Operated
The investigation by the Cyber Crime Police Station (CCPS) revealed a complex nexus involving over 350 bank accounts. These accounts were used to hide and move money earned from:
- Investment Scams: Promising high returns to lure victims.
- Trading Frauds: Manipulating stock or crypto platforms.
- Digital Arrest Scams: Threatening and pressuring victims emotionally to make them transfer money.
Police found that these 350 accounts were connected to about 850 criminal cases across India, showing how big the fraud was.
From Octopus 1 to Octopus 2.0
This latest success comes after Operation Octopus 1 in February 2026, when 32 police teams carried out raids in 16 states and arrested 117 people.
In Operation Octopus 2.0, the focus was on bank employees who played a key role by knowingly allowing illegal transactions. The investigation found that without their help, it would have been much harder to hide and move such large amounts of stolen money.
The raids across different states were carried out under the supervision of DCP (Cybercrimes) V. Aravind Babu and ACP R.G. Siva Maruthi.
Police have warned people to stay alert and not trust unknown investment offers or “digital arrest” threats. Hyderabad Police is now working with national agencies to find the main masterminds behind the Rs 150 crore fraud, who used agents and bank officials to move the stolen money.
