How Cybercriminals are Exploiting India's UPI for Money Laundering Operations
Mar 04, 2024
Cybercrime / Mobile Security
Cybercriminals are using a network of hired money mules in India using an Android-based application to orchestrate a massive money laundering scheme. The malicious application, called XHelper , is a "key tool for onboarding and managing these money mules," CloudSEK researchers Sparsh Kulshrestha, Abhishek Mathew, and Santripti Bhujel said in a report. Details about the scam first emerged in late October 2023, when Chinese cyber criminals were found to take advantage of the fact that Indian Unified Payments Interface ( UPI ) service providers operate without coverage under the Prevention of Money Laundering Act (PMLA) to initiate illegal transactions under the guise of offering an instant loan. The ill-gotten proceeds from the operation are transferred to other accounts belonging to hired mules, who are recruited from Telegram in return for commissions ranging from 1-2% of the total transaction amounts. "Central to this operation are Chinese payment ga...
