Promise of Quick Money Masks High Legal and Financial Risks for Desperate Account Holders
A dangerous trend involving renting personal bank accounts has emerged as an underground financial conduit for illegal activities, particularly involving stock market manipulation and money laundering. This scam is spreading through personal referrals and social media platforms, where people are enticed with promises of quick cash payouts—ranging from a few thousand to several lakhs of rupees. In exchange, they are asked to share bank login credentials and SIM cards linked to their accounts. These seemingly simple arrangements leave account holders vulnerable to criminal charges, financial fraud, and regulatory scrutiny, as the accounts are then used for dubious transactions beyond their knowledge.
Highlights:
Illegal activity involving renting out bank accounts is on the rise.
Account holders share login info and SIM cards in exchange for cash.
Used for laundering money, illegal stock trades, and online gaming transactions.
How the Bank Account Renting Scam Operates
Incentivised Payouts, Lure of Easy Money, and Hidden Motives
In a typical arrangement, the account owner is offered a fixed sum or a percentage (1%–5%) of the total amount transacted through their bank account. These promises are often exaggerated, with daily payments of ₹50,000–₹1 lakh if the account is used to route large transactions—sometimes exceeding ₹1 crore. In some cases, lump sum payouts ranging from ₹20,000 to ₹50,000 are offered upfront. Fraudsters may also offer to cover travel and lodging expenses for those asked to withdraw money and deliver it physically. The targets of such scams are usually people facing acute financial hardship, including those who have lost jobs, need urgent medical funds, or small business owners seeking emergency liquidity.
Highlights:
Payouts include daily percentage or lump sum cash offers.
Scammers target financially distressed individuals.
Fraudsters sometimes pay for travel to complete cash withdrawals.
Use of Rented Accounts in Criminal Networks
Funds Routed for Online Gaming, Stock Manipulation, and Untraceable Schemes
Once access is granted, fraudsters use these accounts to transfer illicit funds, often masked as proceeds from online gaming or trading activities. According to a person previously involved, accounts are primarily used for three purposes: routing gaming money, stock market hot money, and mixed-use purposes involving both. Fraudsters claim that gaming-related money is “cleaner” as it represents winnings hidden from tax authorities, while stock and mixed-use routes involve higher risk due to their association with pump-and-dump stock scams and illegal investment advisories. In reality, the account owner has no visibility into the nature of these funds, leaving them exposed to serious regulatory action.
Highlights:
Accounts used for gaming winnings, stock scams, or both.
Users are kept unaware of fund origin or legality.
Often linked to unregistered or illegal financial activities.
Case Study: SEBI Action and Consequences for Unwitting Account Renters
Real Capital Services Order Shows Grave Risks of Involvement
In a recent case dated April 23, 2025, SEBI ordered Real Capital Services and two associates to refund nearly ₹50 lakh collected from illegal advisory services. One of the named associates, Kirthibhai Chavda, claimed no involvement in the operation and stated that he had rented out his account for just ₹5,000 during a period of financial distress. At the time, Chavda was employed as a delivery boy earning ₹12,000 per month, had suffered an accident, and agreed to the deal during the COVID-19 pandemic. SEBI found that his account was used to collect investor money, and since he couldn’t substantiate his claims, he was held liable. This shows how regulators may still enforce refund obligations or penal action even against passive participants.
Highlights:
SEBI action against Real Capital Services exposes account rental risks.
Chavda’s account was used to collect fees from illegal advisory services.
Regulators may impose penalties if renters cannot prove ignorance.
What Type of Bank Accounts Are Targeted?
Fraudsters Prefer Current Accounts With Bulk Payment and QR Capabilities
Scammers tend to prefer current accounts enabled with Cash Management Products (CMP) or Services (CMS) that allow high-volume payments or Merchant QR (MQR) codes for ease of collecting and dispersing funds. These tools enable quick movement of large sums, often across multiple bank accounts, making the money trail difficult to track. Such accounts are particularly attractive to those operating in high-frequency financial frauds or multi-party laundering rings.
Highlights:
Current accounts with CMP/CMS features are prime targets.
MQR-enabled accounts offer ease of illegal fund routing.
Chosen for ability to process large transactions quickly.
Legal and Financial Repercussions for Account Holders
Criminal Liability, Regulatory Scrutiny, and Financial Losses
Despite the lure of instant earnings, all the legal and financial risks fall entirely on the account holder. Law enforcement agencies can file charges under money laundering and cybercrime laws, while regulators like SEBI or the Enforcement Directorate may demand restitution or penalties. Account holders are frequently unaware that their accounts are being misused, but ignorance may not be accepted as a defense if bank records show involvement in scams. Furthermore, many fraudsters ask the account holder to maintain a minimum balance or place a refundable deposit, which is often never returned—resulting in direct financial losses on top of legal trouble.
Highlights:
Full legal risk borne by the account holder.
Ignorance may not exempt one from criminal or regulatory liability.
Many victims are also financially defrauded via deposits or lost balances.
