Hyderabad: Bank officials cyber fraud network was dismantled by city police, who arrested 52 accused across nine states, including 32 bank officials, in a major crackdown under Operation Octopus 2.0.
The arrested individuals also included 15 mule account holders and five middlemen. The operation targeted a pan-India cyber fraud network that facilitated large-scale financial scams through organised banking channels.
The crackdown was led by DCP (Cybercrimes) V. Aravind Babu and ACP R. G. Siva Maruthi. Police teams carried out coordinated raids across multiple states to identify and apprehend those involved in the fraud network.
Bank officials cyber fraud network exposed in Operation Octopus
According to Hyderabad Police Commissioner V. C. Sajjanar, Operation Octopus 2.0 focused on dismantling networks involving bank officials who helped open mule accounts. These accounts were then used to route and siphon funds obtained through cyber fraud.
He said there had been a rise in investment scams, trading frauds and digital arrest scams. In such cases, fraudsters manipulated victims using intimidation and emotional pressure, causing heavy financial losses.
Earlier, the Cyber Crime Police Station in Hyderabad had identified a network of 350 bank accounts linked to around 850 cases across the country. These transactions involved nearly ₹150 crore.
In response, Operation Octopus–1 was carried out in February 2026 across 16 states. That phase led to the arrest of 117 accused persons by 32 police teams.
Bank officials cyber fraud crackdown expands across states
Building on earlier findings, Operation Octopus 2.0 was launched with a specific focus on bank officials. Police found that several officials were directly involved in opening mule accounts used in cyber crimes registered in Hyderabad.
Authorities formed 16 special teams to execute the operation simultaneously across nine states over seven days. During the raids, police seized 26 mobile phones, 14 cheque books, two pen drives, one laptop and 21 shell company stamps.
The Commissioner stated that Hyderabad City Police followed a strict zero tolerance policy towards cybercrime. He added that Operation Octopus would continue as an ongoing effort to dismantle organised cyber fraud syndicates across India.
The arrests marked a significant escalation in action against bank officials cyber fraud, with investigators focusing on institutional links that enabled such crimes to expand nationwide.