Center warns against illegal digital payment gateways set up by cyber criminals

The Ministry of the Interior (MHA) has warned about illegal payment gateways created by transnational cybercriminal gangs.

According to a PTI report quoting officials, these cyber criminals use ‘mule accounts’ to facilitate this money laundering.

Mule accounts are bank accounts that facilitate illegal transactions by receiving and transferring money from illegal activities.

According to the MHA, the transnational cyber criminals launder money using the accounts of shell companies and individuals, taking advantage of the bulk cashout facility provided by the banks.

The police of Gujarat and Andha Pradesh recently conducted nationwide raids that indicated cybercriminals are setting up illegal digital payment gateways using rented bank accounts to launder the proceeds of various crimes.

In a statement, the government said: “Some of the payment gateways identified during the operation are PeacePay, RTX Pay, PoccoPay, RPPay etc. It has been learned that these gateways offer money laundering as a service and are operated by foreigners. “

When the Indian Cybercrime Coordination Center (14C) of the MHA analyzed the information collected by the state police, the modus operandi of the cyber criminals revealed that they
scout for savings and checking accounts of shell companies and private individuals via Telegram and Facebook.

‘Mule accounts managed remotely from abroad’: MHA

“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.

In addition, the government said that 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.

(With PTI inputs)