11 Jul 2026SOCIETY & SOCIAL ISSUES3 questions

5,000 Mule Accounts and ₹868 Crore: How India Traced a Cyber Fraud Network Across Borders

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Article summary

The Financial Intelligence Unit–India was named runner-up at the Best Egmont Case Award 2026 at the Egmont Group Plenary in Baku, Azerbaijan, for a case that began with intelligence shared by the Indian Cyber Crime Coordination Centre and ended in prosecution complaints under the Prevention of Money Laundering Act, 2002. FIU-IND's analysis traced a laundering network handling approximately ₹868 crore in cyber fraud proceeds through more than 5,000 mule bank accounts and layered cryptocurrency transactions spread across several jurisdictions. Because the trail crossed borders, FIU-IND exchanged intelligence with counterpart financial intelligence units over the Egmont Secure Web to reconstruct the global money trail. Acting on FIU-IND's Operational Analysis Report, the Directorate of Enforcement searched 13 locations, seized ₹47 lakh in cash and USDT holdings worth about ₹13.6 crore, attached assets worth ₹8.67 crore and filed two prosecution complaints. For UPSC, the case is unusually valuable because it exposes the full institutional chain — reporting entity to FIU to foreign FIU to enforcement agency to court — that questions on money laundering usually ask candidates to describe in the abstract.

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recallTests whether you read the article and retained key facts.

applicationTests whether you can apply the concept to a new scenario.

analysisTests whether you can reason across multiple related facts.

Sample questions — answers revealed after test

SOCIETY & SOCIAL ISSUESRecallEasy

Q1. With reference to the Financial Intelligence Unit – India (FIU-IND), which one of the following statements is correct?

AIt was established in 2004 and functions under the Ministry of Home Affairs, reporting to the National Security Council.

BIt was established in 2004 as the central national agency for receiving, processing, analysing and disseminating information on suspect financial transactions, functioning under the Department of Revenue and reporting to the Economic Intelligence Council headed by the Finance Minister.

CIt is an investigating and prosecuting agency empowered to attach assets and file complaints under the Prevention of Money Laundering Act, 2002.

DIt receives only Suspicious Transaction Reports, cash and cross-border transfers being reported directly to the Reserve Bank of India.

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SOCIETY & SOCIAL ISSUESApplicationMedium

Q2. Proceeds of a cyber fraud are dispersed through more than 5,000 mule bank accounts and converted into cryptocurrency held across several jurisdictions. Which one of the following best explains why an institution such as the Egmont Group is essential to unravelling such a network?

AIt exercises supranational powers to freeze accounts directly in member states.

BIt prosecutes transnational money-laundering offences in an international tribunal established for the purpose.

CIt maintains a global register of cryptocurrency wallets to which member states must report.

DIt is an informal network through which over 170 financial intelligence units exchange intelligence over a secure channel, allowing a trail that crosses borders to be followed even though each unit's own jurisdiction stops at its frontier.

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SOCIETY & SOCIAL ISSUESAnalysisHard

Q3. Consider the following statements: 1. The Egmont Group was founded in 1995 at the Egmont-Arenberg Palace in Brussels, and India's financial intelligence unit joined it in 2007. 2. FIU-IND receives Cash Transaction Reports, Suspicious Transaction Reports, Non-Profit Organisation Transaction Reports, Cross Border Wire Transfer Reports and Immovable Property Reports. 3. Acting on FIU-IND's Operational Analysis Report, the Directorate of Enforcement conducted searches and filed prosecution complaints under the Prevention of Corruption Act, 1988. Which of the statements given above are correct?

A1 only

B2 and 3 only

C1 and 2 only

D1, 2 and 3

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