Skip to content
Saved
Home › Guides › Fraud & UPI
Fraud & UPIहिंदी में पढ़ें

Never rent out your bank account, UPI or SIM: the money-mule trap

5 min read
Student using a phone and laptop on a campus lawn

Short answer: If someone offers to pay you for using your bank account, UPI ID, ATM card or SIM, say no. Criminals use these “rented” accounts, called mule accounts, to move money stolen from fraud victims. The government warns this can lead to arrest. Your account can also be frozen, and that includes your own savings in it. The “commission” is tiny next to what you can lose.

How people get pulled in

  • “Part-time job: just receive payments and forward them.”
  • “Open an account for our company. We pay ₹X per account.”
  • “Give us your old SIM and ATM card, and we’ll pay you.”
  • “Earn commission processing game or crypto payments.”
  • A “friend” asks to borrow your UPI for a day.

These offers spread mostly through social media, especially Telegram and Facebook. They often target students and young people.

Why it’s serious

  • The government’s cybercrime centre (I4C) says criminals build illegal payment channels out of rented accounts. They use them for fake investment sites, betting sites based abroad and fake trading apps. I4C warns that money passing through such accounts “can lead to legal consequences, including arrest”.
  • Banks and I4C had flagged (marked as suspect) over 32 lakh mule accounts by 30 June 2026. They are getting better at finding them, fast.
  • RBI has proposed new rules (a draft from September 2026) for temporary holds on money in mule-linked accounts. This follows a Supreme Court order.
  • Getting a SIM by fraud or by pretending to be someone else (impersonation) is a serious offence under the Telecommunications Act, 2023.

A ₹ example

Fictional.

Rohit, a student, is paid ₹5,000 a month to “lend” his account. After 3 months he has earned ₹15,000. Then the account is frozen, with ₹22,000 of his own savings in it.

  • Earned: ₹15,000
  • Can’t use: ₹22,000, possibly for months
  • Plus: a police notice, a possible criminal case, lawyer’s costs, and maybe his bank closing the account

If your account has been frozen

  1. Ask the bank in writing who placed the hold (which police station or cyber cell, and the complaint number) and how much money is held.
  2. Contact that police station or cyber cell. Take your ID and bank statements, and explain any money coming in that you don’t recognise.
  3. If you were tricked into “renting” the account, say so early and stop all use. Get advice from a lawyer or your District Legal Services Authority (free legal aid).
  4. If only part of the money is on hold, ask the bank whether the rest can be released.
  5. Never pay “agents” who promise to unfreeze accounts for a fee.

Protect yourself today

  • Never share your net-banking login, UPI PIN, ATM card or SIM with anyone.
  • Has anyone else had access to your accounts? Change your passwords and PINs.
  • Block old SIMs you no longer use.
  • Report suspicious offers on 1930 or cybercrime.gov.in. Report suspicious messages on Sanchar Saathi → Chakshu.

Myths

  • “I didn’t steal anything, I only lent my account.” The account is yours, and fraud money passing through it can lead to arrest.
  • “It’s legal if it’s for a gaming or crypto business.” Payments for online money games have been banned since 1 May 2026.
  • “Banks won’t notice.” Lakhs of mule accounts are being flagged.

What to check today

  1. Make sure nobody else has your net-banking, UPI or ATM details.
  2. Tell younger family members about these “part-time job” offers.
  3. Save 1930 in your phone.

Sources and review

Try it with your numbers
Fraud checklist
Open tool →

Educational information, not financial advice. Found an error? Tell us → · Corrections log

Frequently asked questions

What is a money mule account?

It is a bank account, UPI ID, ATM card or SIM that criminals "rent" from someone to move money stolen from fraud victims. The owner gets a small commission. The government's cybercrime centre (I4C) warns that money passing through such accounts can lead to arrest. Your account can also be frozen, with your own savings in it.

Is it illegal to let a friend use my bank account or UPI?

It can land you in serious trouble. If fraud money passes through your account, it can lead to arrest, even if you only "lent" it. A friend asking to borrow your UPI for a day is a common way people get pulled in. Never share your net-banking login, UPI PIN, ATM card or SIM with anyone.

Is a part-time job that just receives and forwards payments safe?

No. "Just receive payments and forward them" is a classic money-mule offer. These offers spread mostly on Telegram and Facebook and often target students and young people. The commission is tiny next to what you can lose: a frozen account, a police notice and a possible criminal case. Report such offers on 1930 or cybercrime.gov.in.

My bank account has been frozen by a cyber cell. What should I do?

First, ask the bank in writing who placed the hold, the complaint number and how much money is held. Then contact that police station or cyber cell with your ID and bank statements. If only part of the money is on hold, ask whether the rest can be released. Never pay agents who promise to unfreeze accounts for a fee.

I was tricked into renting my account. Will I be arrested?

We can't say how your case will go, but act early. Stop all use of the account, and tell the police or cyber cell that you were tricked. Get advice from a lawyer or your District Legal Services Authority, which gives free legal aid. Change your passwords and PINs if anyone else had access.

Can I sell my old SIM card or ATM card for cash?

No. Offers to buy your old SIM and ATM card are a common way to build mule accounts. Getting a SIM by fraud or by pretending to be someone else is a serious offence under the Telecommunications Act, 2023. Block old SIMs you no longer use. Report suspicious messages on Sanchar Saathi → Chakshu.