The Kozhikode city and rural police have expanded their financial crackdown, placing a vast network of personal bank accounts and online transactions under constant scrutiny. Investigators attached to the anti-narcotics squads reveal that interstate drug traffickers are suspected of using these private accounts to secretly receive and transfer illicit funds.

As part of this sweeping operation, law enforcement agencies are now busy identifying all suspicious mule accounts, which are personal bank accounts reportedly leased out by individuals to receive illegal funds on a commission basis. A troubling trend identified during the probe shows that narcotics kingpins are increasingly exploiting local youth, particularly college students, to act as financial proxies.

“Lured by quick financial rewards, these individuals hand over their personal banking details and digital wallets to anonymous handlers dealing with drug trafficking. These mule accounts provide a layer of cover for unidentified gangs,” says a senior police officer with the State’s Anti-Narcotics Special Action Force. He reveals that the traffickers misuse the clean banking histories of these youngsters to collect digital payments from drug buyers and mask the money trail to evade all future investigations.

To track the massive volume of secret transactions, the police are also relying on their newly launched ‘Cyber Shield’ platform. This system connects banking institutions with enforcement squads in real time, allowing authorities to rapidly freeze suspicious accounts. The investigation into widespread mule accounts—reportedly scattered across various rural pockets like Kuttiyadi, Perambra, Koyilandy and Vadakara—has also drawn the attention of Central agencies including the Central Bureau of Investigation (CBI).

According to police sources, the cyber forensic squads are decoding a set of digital documents seized during the recent series of raids, including mobile devices and fraudulent transaction logs, for a breakthrough.

Senior police officers holding enforcement charges have already issued a stern warning that account holders bear complete legal responsibility for any transactions under their names. Anyone found renting out their accounts to receive anonymous funds faces immediate action under the NDPS Act and cyber laws including forfeiture of personal assets, they warn.

This multi-agency enforcement drive under ‘Operation Toofan’ achieved a critical breakthrough on Sunday (July 12, 2026) when the District Anti-Narcotics Special Action Force arrested a 30-year-old woman, K.C. Keerthana, in Perambra. A detailed financial analysis found that her personal bank account was actively used to collect and siphon funds generated from synthetic drug deals linked to inter-district traffickers.

The latest crackdown builds directly on intelligence gathered during the initial phase of ‘Operation Cyhunt’, a specialised drive that previously zeroed in on 114 suspected bank accounts earlier flagged for illicit activity in Kozhikode district. That entire phase had seen coordinated raids executed across 91 locations, resulting in the registration of 25 cases. Apart from such accounts, efforts were also initiated to identify other suspicious transactions and connected bank accounts operated by anonymous persons engaged in the illegal business.