Hyderabad: A recent investigation by the Hyderabad Cyber Crime Police has revealed a concerning trend of insider involvement in cyber frauds within the banking sector. The operation led to the arrest of 52 individuals, including senior officials from prominent private banks, highlighting vulnerabilities in financial institutions’ internal controls.
The Arrests:
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Shubham Kumar Jha: Deputy Manager at RBL Bank in Bangalore, accused of exploiting access to sensitive financial data for unauthorized transactions.
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Haroon Rasheed Imamuddin Dharawad: Assistant Vice-President at Axis Bank, allegedly bypassed standard protocols to approve fraudulent transactions, facilitating significant fund siphoning.
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Kata Srinivasa Rao: Sales Manager at Kotak Mahindra Bank, implicated in opening fraudulent accounts and recruiting customers into investment scams linked to trading frauds amounting to ₹2.98 crore.
The investigation uncovered that these officials misused their positions to facilitate illegal money transfers, launder funds, and recruit unsuspecting victims into fraudulent schemes. The syndicate was involved in 33 major financial fraud cases, resulting in losses totaling ₹88.3 crore.
Operation Details:
The crackdown, executed by seven specialized teams, spanned multiple states, including Gujarat, Karnataka, Andhra Pradesh, Delhi, Uttar Pradesh, Maharashtra, West Bengal, Bihar, and Telangana. Authorities identified a complex network of fraudulent transactions exploiting digital finance platforms. In total, 576 related cases were identified across India, with 74 registered in Telangana alone.
Seized Assets:
During the operation, police confiscated ₹47.9 lakh in cash, cryptocurrency worth ₹40 lakh, and froze ₹2.87 crore in the accused’s bank accounts. Additionally, they recovered 43 mobile phones, 39 ATM cards, 17 passbooks, 54 cheque books, and several identity documents used to facilitate fraudulent activities.
Official Statement:
Hyderabad Police Commissioner C.V. Anand emphasized the critical role of internal compliance within financial institutions, stating, “Without the banking system, cybercrime cannot operate. There are different layers of bank accounts the cyber fraudsters use to siphon the stolen amount.”
Looking Ahead:
In light of these findings, the Hyderabad Police plan to focus on identifying and addressing loopholes within the banking system and the involvement of bank officials in cyber frauds. The Commissioner urged financial institutions to strengthen their internal controls and called for increased vigilance to prevent such fraudulent activities in the future.
