Rent-A-Bank-Account Scam: How It Works And How To Avoid It
In Wayanad’s serene hills, a young man thought he had discovered an easy way to earn money. A social media message promised quick cash if he “rented” his bank account to strangers. He shared his account details, OTPs, and other credentials in exchange for a one-time payment of Rs 8,000.
Weeks later, police visited him, accusing him of money laundering. "We only realised it was a trap when the police came knocking," he said. Today, he faces potential criminal charges and an uncertain future.
His experience is not unique. More than 500 young people in Kerala’s Wayanad district fell prey to similar scams in September, according to PTI.
Understanding the Scam
Renting out your bank account is illegal. Despite repeated warnings from the government and banking sector, criminals continue to exploit vulnerable individuals.
Fraudsters offer payments for “renting” an account, also called “mule accounts”. Lured by easy money, unsuspecting individuals unknowingly transfer illegally obtained funds. Typical offers range from Rs 5,000 to Rs 10,000, with some promising a share of 1–5% of the total transaction. For larger sums, daily payouts of Rs 50,000 to Rs 1 lakh are sometimes promised.
How Criminals Exploit Accounts
Rented accounts are used for money laundering, stock market fraud, and pump-and-dump schemes.
Victims often remain unaware of the source of funds, which could be proceeds of crime or unauthorised investments. By sharing passwords, card details, or OTPs, account holders unintentionally enable illegal operations. Fraudsters often pose as legitimate entities through apps, links, or QR codes.
Risks and Legal Consequences
Account holders are legally liable for crimes committed in their name. Consequences include imprisonment, fines, permanent criminal records, ruined credit scores, and frozen bank accounts. Regulatory authorities like SEBI can also impose penalties for facilitating illegal financial activities.
Wayanad Warning
In September, Wayanad’s cyber police reported that over 500 residents, mainly young men and women, fell victim to out-of-district fraudsters. Criminals rented accounts to carry out illegal transactions, leaving account holders under police scrutiny. What seemed like easy money quickly turned into a legal nightmare.
How to Protect Yourself
Staying alert and informed is crucial. Offers that promise quick riches often lead to serious legal and financial troubles.
Weeks later, police visited him, accusing him of money laundering. "We only realised it was a trap when the police came knocking," he said. Today, he faces potential criminal charges and an uncertain future.
His experience is not unique. More than 500 young people in Kerala’s Wayanad district fell prey to similar scams in September, according to PTI.
Understanding the Scam
Renting out your bank account is illegal. Despite repeated warnings from the government and banking sector, criminals continue to exploit vulnerable individuals.
Fraudsters offer payments for “renting” an account, also called “mule accounts”. Lured by easy money, unsuspecting individuals unknowingly transfer illegally obtained funds. Typical offers range from Rs 5,000 to Rs 10,000, with some promising a share of 1–5% of the total transaction. For larger sums, daily payouts of Rs 50,000 to Rs 1 lakh are sometimes promised.
How Criminals Exploit Accounts
Rented accounts are used for money laundering, stock market fraud, and pump-and-dump schemes.
Victims often remain unaware of the source of funds, which could be proceeds of crime or unauthorised investments. By sharing passwords, card details, or OTPs, account holders unintentionally enable illegal operations. Fraudsters often pose as legitimate entities through apps, links, or QR codes.
Risks and Legal Consequences
Account holders are legally liable for crimes committed in their name. Consequences include imprisonment, fines, permanent criminal records, ruined credit scores, and frozen bank accounts. Regulatory authorities like SEBI can also impose penalties for facilitating illegal financial activities.
Wayanad Warning
In September, Wayanad’s cyber police reported that over 500 residents, mainly young men and women, fell victim to out-of-district fraudsters. Criminals rented accounts to carry out illegal transactions, leaving account holders under police scrutiny. What seemed like easy money quickly turned into a legal nightmare.
How to Protect Yourself
- Reject any offers to rent your account.
- Use secure digital banking practices.
- Never share sensitive information online.
- Report suspicious approaches to your bank, the platform, or cybercrime units.
Staying alert and informed is crucial. Offers that promise quick riches often lead to serious legal and financial troubles.
Next Story