The Ministry of Internal Affairs warns against illegal payment gateways created by cyber criminals

The Union Home Ministry has issued a warning against illegal payment gateways created by transnational cyber criminal gangs using mule bank accounts and used to facilitate money laundering, officials said on Monday (Oct 28, 2024).

The gateways have been created by transnational cybercriminals who offer money laundering services using accounts of shell companies and individuals, taking advantage of the bulk payout facility offered by banks, the report said.

Police in Gujarat and Andhra Pradesh recently conducted nationwide raids that revealed that cybercriminals have set up illegal digital payment gateways using rented bank accounts to launder the proceeds of various crimes.

“Some of the payment gateways identified during the operation are PeacePay, RTX Pay, PoccoPay, RPPay etc. These gateways are intended as a money laundering service and are operated by foreigners,” a government statement said.

When the information collected by the state police was analyzed by India’s Cybercrime Coordination Center (I4C), the cybercriminals’ modus operandi emerged…it revealed that criminals are seeking savings and checking accounts of shell companies and individuals through Telegram. and Facebook.

“These mule accounts are managed remotely from abroad. An illegal payment gateway is then created using these mule accounts which are given to criminal syndicates for accepting deposits on illegal platforms such as fake investment scam sites, offshore betting and gaming websites and fake stock trading platforms. etc.,” the statement said.

It said the proceeds of such crimes will be immediately deposited into another account once the proceeds of the crimes are received.

“Bulk payout facilities offered by banks are being misused for this purpose,” it added.

“I4C has advised citizens not to sell/rent their bank accounts/company registration certificate/Udhyam Aadhaar registration certificate to anyone. Illegal funds deposited into such bank accounts can lead to legal consequences, including arrest. Banks can use checks to identify misuse of bank details. accounts used to set up illegal payment gateways,” the statement said.