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Ajay, a college student in Pune, lost his part-time job during the Covid-19 pandemic and was looking for an income online. In desperation, he responded to a Telegram message offering ₹5,000

per week to “lend” his bank account for a few transactions.

He was told, “We only need to use your account to receive some payments. It’s legal. You keep a cut, and we take the rest. No risk at all.” Ajay agreed. He shared his account details and

even gave remote access to UPI and netbanking credentials.

Within days, large amounts in the ₹1.2 lakh-80,000 range started flowing into his account and were quickly withdrawn or transferred. A week later, Ajay’s bank account was frozen, and he was

summoned by the cyber cell. It turned out his account was used by an online fraudster to launder money from a phishing scam targeting elderly people.

This is how a ‘rent-a-bank-account’ scam works. Fraudsters use someone else’s account to receive or route illegal money, often from scams, gambling sites, or dark web activity. The account

owner is paid a small commission, often unaware of the scale or source of the money. If caught, the legal liability often falls on the person who rented the account, since the account is in

their name.

Amit Relan, co-founder and CEO, mFilterIt, says, “The ‘rent-a-bank-account’ scam involves fraudsters luring individuals, often with the promise of quick money, to rent out their personal

bank accounts. These accounts are then used as drop points for illicit funds linked to GST fraud, shell company transactions, and even money laundering."

"What seems like a harmless favour can quickly spiral into a serious crime. In some cases, these accounts are used to route funds that support organised crime or terrorist activities, making

the account holder legally and morally liable," said Relan.

Banks often blacklist such accounts, ruining the person’s credit and financial future.

"This isn’t just financial fraud, it’s a national security concern. The only way to stop it is through public awareness, tighter KYC controls, and coordinated action across banks and

enforcement agencies. We witness 50,000-1,00,000 such accounts every month," added Relan.

Ashish Singhal, CEO, IBDIC, said, “The ‘rent-a-bank-account’ scam is not just another fraud—it’s a systemic vulnerability that undermines the integrity of our financial ecosystem. Addressing

it requires more than top-down directives. We need hyper-local, ongoing awareness campaigns—delivered in regional languages—to ensure individuals don’t unknowingly become conduits for

financial crime. Equally vital is cross-sector collaboration, especially between telecom and BFSI. As a consortium, we must move beyond fragmented efforts by proactively sharing not just

emerging scam typologies, but also granular intelligence on compromised accounts. This is key to building a faster, more coordinated defence across institutions.”