Hyderabad, April 19 (NationPress) The Hyderabad City Police have successfully dismantled a nationwide cyber fraud syndicate, resulting in the apprehension of 52 suspects, which includes 32 bank officials across nine states.

On Sunday, Hyderabad Police Commissioner V. C. Sajjanar announced the launch of a significant operation named Operation Octopus 2.0, aimed at disrupting this organized cyber fraud network.

Sixteen specialized teams of experienced investigators executed the operation simultaneously in nine states over a period of seven days.

The Commissioner reported that 52 individuals, including 32 bank officials who played crucial roles in orchestrating the fraud, were detained.

Among those arrested were six officials from Indusind Bank, five from both Bandhan Bank and Bank of Baroda, four each from Federal Bank and IDFC First Bank, along with two each from Karnataka Bank, Karur Vysya Bank, and AU Small Finance Bank, and one each from Equitas Small Finance Bank and HDFC Bank.

Additionally, 15 mule account holders, who knowingly allowed their bank accounts to be used for layering and laundering illicit funds, were also taken into custody.

The police apprehended five account suppliers/aggregators, the key intermediaries responsible for procuring these accounts and facilitating the transfer of funds to the masterminds.

During the operation, police teams confiscated 26 mobile phones, 14 cheque books, two pen drives, one laptop, and 21 stamps from shell companies.

According to the Commissioner, there has been a marked increase in investment scams, trading frauds, and “digital arrest” scams, where fraudsters manipulate, intimidate, and emotionally coerce victims, resulting in significant financial losses.

Recognizing the gravity of the situation, Operation Octopus–1 was initiated to deliver a decisive blow against these illegal networks. The Cyber Crime Police Station (CCPS) in Hyderabad uncovered a network of 350 bank accounts used to siphon off victims’ funds, linked to approximately 850 cases nationwide, involving transactions totaling nearly Rs 150 crore.

In February 2026, Operation Octopus–1 was executed across 16 states by 32 police teams, leading to the arrest of 117 individuals.

Building on the success of Operation Octopus–1, Operation Octopus 2.0 was launched this week with a specific focus on targeting bank officials.

This operation resulted in the successful apprehension of bank officials who were complicit in the opening of mule bank accounts, which were utilized to facilitate cyber fraud reported to CCPS.

The scope of Operation Octopus 2.0 has been unprecedented, spanning a vast geographical area across India. To carry out this large-scale operation, 16 special teams were formed, each led by an officer of Inspector rank. These teams were simultaneously deployed to pinpoint bank official targets in Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Bihar, as stated by the Commissioner.

Despite various operational challenges across multiple states, the teams effectively coordinated with local law enforcement agencies to perform targeted and precise actions. Their efforts demonstrate a high level of professionalism, coordination, and unwavering commitment to duty, as noted by Police Commissioner Sajjanar.

It has also been observed that private sector banks are primarily facilitating the opening of mule bank accounts. This trend indicates considerable lapses in due diligence and KYC verification processes, which are being exploited by cybercriminals. In many cases, accounts have been opened without proper verification of customer credentials, enabling their misuse for fraudulent activities, he added.