The Hyderabad City Police have dismantled a pan-India cyber fraud network, arresting 52 individuals, including 32 bank officials, during a week-long multi-state operation named 'Operation Octopus 2.0', officials reported.
The operation was conducted under the supervision of DCP (Cybercrimes) V Aravind Babu and ACP RG Siva Maruthi and targeted organised groups involved in investment scams, trading frauds, and digital arrest scams, in which victims were deceived through manipulation and intimidation.
Police deployed 16 special teams led by Inspector-rank officers simultaneously across Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana, and Bihar. In total, 52 accused were arrested, comprising 32 bank officials, 15 mule account holders, and five middlemen or aggregators.
Among those detained was a Relationship Manager from Bandhan Bank, who allegedly collaborated with fraudsters to open and operate fraudulent accounts. The mule account holders knowingly allowed their bank accounts to be used for laundering illicit funds, while the aggregators procured accounts and transferred funds to the masterminds.
Seized items included 26 mobile phones, 14 cheque books, two pen drives, one laptop, and 21 shell company stamps.
This crackdown follows an investigation by the Cyber Crime Police Station, Hyderabad, which uncovered a network of 350 bank accounts connected to nearly 850 cases nationwide, involving transactions amounting to approximately ₹150 crore.
‘Operation Octopus 2.0’ succeeded an initial phase carried out in February this year, where 32 police teams arrested 117 suspects across 16 states. Authorities noted that private sector banks mainly facilitated the opening of mule accounts, indicating “significant lapses in due diligence and KYC verification”. In several cases, accounts were opened without adequate verification of customer credentials, enabling their misuse for fraud.
The Hyderabad City Commissioner stated that the police have adopted a “Zero Tolerance” policy towards cybercrime. He said, “Anyone involved in such crimes, regardless of position or influence, will face strict legal action. Those facilitating cybercrime, including bank officials and mule account holders, will be dealt with an iron hand.”
Police added the investigation is ongoing to identify higher-level operatives within the network and that Operation Octopus will continue as an ongoing initiative.