The Indian government has issued a stern warning against the creation and use of illegal payment gateways. These gateways, set up using mule bank accounts, are the handiwork of transnational organized cybercriminals and are being used to facilitate money laundering services. The alert was issued by the Indian Cybercrime Coordination Center (I4C), operating under the Ministry of Home Affairs (MHA).
The I4C has advised citizens against selling or renting their bank accounts, company registration certificates, or Udhyam Aadhaar Registration certificates to anyone. The ministry has warned that illicit funds deposited in such bank accounts could lead to legal consequences, including arrest. Banks are being urged to deploy checks to identify misuse of bank accounts that are used for setting up these illegal payment gateways.
The alert comes in the wake of recent nationwide raids conducted by the Gujarat and Andhra Pradesh Police. These operations revealed that transnational criminals have created illegal digital payment gateways using mule or rented accounts. These illegal infrastructures are being used to launder the proceeds of various cybercrime activities.
The I4C's analysis, based on information received from State Police Agencies, has identified that current and saving accounts are being scouted through social media platforms, primarily Telegram and Facebook. These accounts belong to shell companies, enterprises, or individuals and are controlled remotely from overseas.
These mule accounts are then used to create illegal payment gateways, which are given to criminal syndicates for accepting deposits on illegal platforms. These platforms include fake investment scam sites, offshore betting and gambling websites, and fake stock trading platforms.
The ministry has noted that the proceeds of such crimes are immediately layered into another account as soon as they are received. The bulk payout facility provided by banks is being misused for this purpose. Some of the payment gateways identified during the operation include PeacePay, RTX Pay, PoccoPay, and RPPay. These gateways are believed to be providing money laundering as a service and are operated by foreign nationals.
This is not the first time that such a cybercrime has come to light. In the past, there have been instances where cybercriminals have used similar tactics to facilitate illegal activities. However, the scale and sophistication of these operations have increased significantly, making it a matter of grave concern for the authorities.
The government's alert is a step in the right direction to curb such activities. It not only raises awareness among the public but also puts the onus on banks to implement stringent checks to prevent the misuse of bank accounts. The collaborative efforts of the MHA and LWAs are commendable in their pursuit of a Cyber Secure Bharat.
The fight against such transnational cybercriminal activities is far from over. It requires continuous vigilance, technological advancements, and international cooperation to effectively combat these threats. The government's alert serves as a reminder of the challenges that lie ahead in the path of ensuring a secure digital environment for all citizens.
