Kerala: Kerala High Court has warned junior lawyers to be extremely careful while handling bank account defreeze pleas linked to cybercrime. The Court said that some young advocates may unknowingly help cyber fraudsters by filing petitions to unfreeze bank accounts used as “money mule” accounts. The observations came while the Court dismissed a petition seeking the unfreezing of a bank account allegedly connected to financial cyber fraud.
Details of Kerala HC on Cybercrime Linked Bank Account Defreeze Petitions
Justice M.A. Abdul Hakhim observed that many newly enrolled lawyers are taking up petitions seeking the unfreezing of frozen bank accounts because such cases often involve standard pleadings and quick interim orders.
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However, the Court warned that this practice can unintentionally help cybercriminals continue operating money mule accounts used to move stolen funds.
Kerala HC on Cybercrime Linked Bank Account Defreeze Petitions: Some Junior Lawyers Are Misled
The Court clarified that not every lawyer handling these matters is acting with bad intentions. It acknowledged that several young advocates genuinely represent innocent account holders. However, it said some lawyers enter this field due to carelessness and fail to properly verify the background of their clients before filing petitions.
AI-Generated Petitions Also Raise Concerns
Justice Abdul Hakhim recalled an earlier case where the Court suspected that a petition had been generated using artificial intelligence. During the hearing, the lawyer appearing in the matter was reportedly unable to answer even basic questions related to the petition. This prompted the Court to express concern over the growing use of AI-generated legal pleadings without proper legal verification.
Kerala HC on Cybercrime Linked Bank Account Defreeze Petitions: Police Verification Made More Important
The Court noted that it had earlier directed that every petition seeking the defreezing of a bank account should clearly mention the jurisdictional police station. This helps authorities verify the identity of petitioners and examine whether the account is genuinely linked to cyber fraud investigations.
Court Praises Young Lawyers
Despite its warning, the Kerala High Court praised today’s young law graduates. The Court said modern legal education, internships and moot court training have produced capable lawyers with strong legal knowledge. It added that young advocates are valuable to the legal profession when guided properly by senior members of the Bar and the Bench.
Petition Dismissed, FIR Ordered
The observations came while the Court dismissed a writ petition filed by a 21-year-old woman seeking to unfreeze her bank account. After examining the records, the Court held that there was prima facie material indicating the account had been opened to facilitate cyber fraud. It directed the Station House Officer of Tanur Police Station to register an FIR under Section 111 of the Bharatiya Nyaya Sanhita (BNS), 2023, and investigate the matter.
Growing Threat of Money Mule Accounts
The Court highlighted that financial cyber fraud has become highly organised. According to the Court, fraudsters increasingly use “money mule” accounts to split and transfer stolen money through multiple bank accounts, making the funds difficult to trace and recover. Account holders often receive a share of the illegal money in return for allowing their accounts to be used.
