Hyderabad Cyber Crime Police Uncover Banking Sector Fraud
The Hyderabad Cyber Crime Police have uncovered a disturbing trend of insider involvement in cyber fraud within the banking sector. Their investigation led to the arrest of 52 individuals, including senior officials from well-known private banks, exposing serious weaknesses in the internal controls of financial institutions.
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Key Arrests in the Case
Among those arrested were:
– Shubham Kumar Jha, Deputy Manager at RBL Bank in Bangalore, accused of misusing access to sensitive financial data to carry out unauthorized transactions.
– Haroon Rasheed Imamuddin Dharawad, Assistant Vice-President at Axis Bank, who allegedly bypassed standard procedures to approve fraudulent transactions, enabling large-scale fund siphoning.
– Kata Srinivasa Rao, Sales Manager at Kotak Mahindra Bank, implicated in creating fake accounts and luring customers into investment scams tied to trading frauds worth ₹2.98 crore.
These officials reportedly used their positions to facilitate illegal money transfers, launder funds, and deceive victims into fraudulent schemes. Investigators revealed that the syndicate was linked to 33 major financial fraud cases, causing a total loss of ₹88.3 crore.
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Nationwide Crackdown
The operation involved seven specialized teams and spanned multiple states, including Gujarat, Karnataka, Andhra Pradesh, Delhi, Uttar Pradesh, Maharashtra, West Bengal, Bihar, and Telangana. Authorities uncovered a sophisticated network of fraudulent activities exploiting digital financial platforms.
Across India, a total of 576 related cases were identified, with 74 of them registered in Telangana alone. This highlights the widespread nature of the fraud and the need for tighter controls.
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Seized Assets and Evidence
During the operation, police seized significant assets, including ₹47.9 lakh in cash, cryptocurrency worth ₹40 lakh, and ₹2.87 crore frozen in the accused’s bank accounts. Other confiscated items included:
– 43 mobile phones
– 39 ATM cards
– 17 passbooks
– 54 cheque books
– Various identity documents used to enable fraudulent activities
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Call for Stronger Banking Controls
Hyderabad Police Commissioner C.V. Anand stressed the importance of stricter internal compliance within financial institutions. He stated, “Without the banking system, cybercrime cannot operate. There are different layers of bank accounts the cyber fraudsters use to siphon the stolen amount.”
The Commissioner highlighted how vulnerabilities in banking systems provide opportunities for fraud and called for greater vigilance to prevent such incidents.
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Moving Forward
In response to these findings, the Hyderabad Police plan to intensify efforts to identify loopholes in the banking system. They also aim to address the role of bank officials in cyber fraud. Commissioner Anand urged financial institutions to strengthen their internal controls and adopt proactive measures to tackle fraudulent activities effectively.
This crackdown serves as a wake-up call for the banking sector to prioritize security and protect customers from cyber frauds.
