The Karnataka Criminal Investigation Department has introduced a dedicated helpdesk to support individuals affected by bank account freezes during cyber fraud investigations, following court rulings on targeted and proportionate account restrictions.
The Karnataka Criminal Investigation Department has opened a dedicated helpdesk to support people whose bank accounts have been frozen during cyber fraud probes and investigations into suspected mule-account networks. The facility, run under the Cyber Command centre at CID headquarters, is intended to give account holders a formal route to challenge freezes they say have caught up innocent money as police trace alleged crime proceeds.
The new arrangement brings together the account holder, the bank and the investigating agency to test whether a full account freeze is really necessary. Where only a specific sum is believed to be linked to an offence, officials will consider whether a lien, a temporary hold on that portion of the balance, would be enough instead of blocking all withdrawals. The move follows intervention by the Karnataka High Court, which has pressed for a proper grievance mechanism in cases involving debit freezes and liens ordered during cybercrime investigations.
The court had already made clear that banks should not go beyond the scope of a freezing direction. In June, it held that where investigators specify an amount, banks should restrict the hold to that figure and allow access to the rest of the account, rather than freezing everything. The court also asked for more disciplined procedures, including reasoned orders for full freezes, clearer documentation of lien requests and periodic review of restrictions.
Dr Pronab Mohanty, the director general of police heading Cyber Command, has been named nodal officer for the process. Speaking to The Indian Express, Mohanty said the helpdesk is meant to work as a mediation point, explaining why an account was frozen and, where possible, speeding up a resolution. He said cases from within Karnataka can be examined directly, while matters arising in other states require coordination with the relevant agencies and the bank. The helpdesk has been running on an experimental basis, with sessions held on four Thursdays so far. Officials said about seven to eight Karnataka-origin cases have been resolved, while others remain pending.
One unresolved case cited by officials involves a man from Tamil Nadu who sold property, received the sale proceeds and then found his bank account frozen after investigators said part of the incoming money was tied to cyber fraud. He says he cannot access the sale consideration even though title to the property has already passed. The CID is also using the Grievance Redressal Module introduced by the Indian Cyber Crime Coordination Centre, through which affected account holders can file complaints and upload supporting documents.
The initiative comes against a backdrop of sharp cybercrime growth in the state. National Cybercrime Reporting Portal data for 2024 showed Karnataka logged losses of ₹2,915 crore across 6.11 lakh cases, almost four times the ₹660 crore reported in 2023. Between December 2025 and February 2026, Cyber Command registered 60 first information reports involving 869 bank accounts, while the portal received 8,788 complaints. Police said funds were moved through accounts opened in relatives’ names, then withdrawn in cash, converted into cryptocurrency or sent onwards, in some cases to handlers outside India. A crackdown during that period led to 68 arrests across 35 locations in Karnataka.
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