Summary: Under “Operation Cy-Hawk,” law enforcement dismantled a massive cyber-fraud network that utilized 20 shell companies and mule accounts to launder approximately Rs 180 crore. The syndicate targeted victims nationwide using complex layering mechanisms to evade detection.
Business Impact: This case highlights the industrialization of cybercrime. Corporate finance departments must be wary of “new vendors” that may be part of such shell networks, as being inadvertently linked to these accounts can trigger AML (Anti-Money Laundering) freezes.
Why It Happened: The attackers exploited gaps in the rapid digital onboarding process for new businesses, using stolen identities to float legitimate-looking companies that served as funnels for stolen funds.
Recommended Executive Action: Enhance your “Know Your Vendor” (KYV) processes. Direct your finance team to flag and manually verify any significant transfers to newly registered private limited companies, especially those without a verified physical presence.
Hashtags: #CyHawk #FinancialFraud #CyberCrime #AML #VendorRisk #ShellCompanies