Union Home Ministry Alerts on Illegal Payment Gateways

In October 2024, the Union Home Ministry issued an alert regarding illegal digital payment gateways set up by transnational cybercriminal gangs to facilitate money laundering through mule bank accounts.

Key Points

Modus Operandi of Cybercriminals: Transnational cybercriminals create payment gateways by using bank accounts from shell companies and individuals.
They exploit the bulk payout facilities of banks to enable large-scale money laundering.
Nationwide Raids Reveal Scope: Raids in Gujarat and Andhra Pradesh exposed the use of these illegal gateways, such as PeacePay, RTX Pay, PoccoPay, and RPPay, which are managed by foreign nationals and facilitate money laundering as a service.
Use of Mule Accounts: Cybercriminals acquire control of mule accounts via platforms like Telegram and Facebook.
These accounts are then used to create payment gateways for receiving funds from illegal platforms, including fake investment scams, offshore betting sites, and fraudulent stock trading platforms.
Coordination by Indian Cybercrime Centre: The Indian Cybercrime Coordination Centre (I4C) analyzed data collected by state police, which revealed the extent and international reach of these operations, targeting funds generated from various criminal activities.