Centre warns against illegal digital payment gateways set up by cybercriminals

The Ministry of Home Affairs (MHA) has warned against illegal payment gateways created by transnational gangs of cybercriminals

Published on: Oct 28, 2024, 22:57:07 IST

By HT News Desk

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The Ministry of Home Affairs (MHA) has warned against illegal payment gateways created by transnational gangs of cybercriminals.

According to a PTI report quoting officials, these cybercriminals are using “mule accounts” to facilitate money laundering.

According to the MHA, the transnational cybercriminals launder money using accounts of shell companies and individuals

Mule accounts are bank accounts facilitating illegal transactions by receiving and transferring funds from unlawful activities.

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According to the MHA, the transnational cybercriminals launder money using accounts of shell companies and individuals, exploiting the bulk payout facility provided by the banks.

The Gujarat and Andha Pradesh Police recently carried out nationwide raids that pointed to cybercriminals setting up illegal digital payment gateways using rented bank accounts for laundering the proceeds of different crimes.

In a statement, the government said,"Some of the payment gateways identified during the operation are PeacePay, RTX Pay, PoccoPay, RPPay etc. These gateways are learnt to be providing money laundering as a service and are operated by foreign nationals."

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When the Indian Cybercrime Coordination Centre (14C) under the MHA analysed the information gathered by the state police, the modus operandi of the cybercriminals showed that they
scout for savings and current accounts of shell companies and individuals through Telegram and Facebook.

‘Mule accounts controlled remotely from overseas’: MHA

"These mule accounts are controlled remotely from overseas. An illegal payment gateway is then created using these mule accounts which are given to criminal syndicates for accepting deposits on illegal platforms like fake investment scam sites, offshore betting and gambling websites and fake stock trading platforms, etc.," the statement said.

Adding further, the government said the proceeds of such crimes are immediately layered into another account as soon as the crime proceeds are received.

"Bulk Payout facility provided by banks are misused for the same," it added.

"I4C has advised citizens not to sell/rent their bank accounts/company registration certificate/Udhyam Aadhaar Registration certificate to anyone. Illicit funds deposited in such bank accounts can lead to legal consequences, including arrest. Banks may deploy checks to identify misuse of bank accounts that are used for setting up Illegal Payment Gateways," the statement said.

(With PTI inputs)

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HT News Desk
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