Cuttack: In a shocking case of financial fraud, the Criminal Investigation Department (CID) of the Odisha Crime Branch arrested Khirod Nayak, a Relationship Manager at Axis Bank’s Cuttack branch, on Saturday. Nayak is accused of misappropriating Rs. 2.3 crore from the account of a senior citizen who had entrusted him with managing her banking transactions.
How the Fraud Unfolded
The incident came to light after the elderly victim, a customer of Axis Bank’s Badambadi branch, lodged a complaint. Following the death of her husband, the bank assigned Nayak as her Relationship Manager due to her limited understanding of banking and investment processes. The woman held savings, current, and overdraft (OD) accounts with the bank.
Officials stated that Nayak, leveraging his position of trust, regularly visited the complainant’s residence under the pretext of providing personalized banking services. He even used her mobile phone to access and display quarterly bank account statements. At his suggestion, the victim moved a significant portion of her savings into fixed deposits, believing it would yield higher returns. Nayak reportedly obtained multiple signatures from her on various documents, claiming they were procedural requirements for the investment.
Discovery of the Fraud
The victim discovered the fraud only after being contacted by the bank’s loan department about an overdraft loan linked to her account. She was shocked to learn that funds had been transferred to an account held by an unknown individual, identified as Sumitra Khuntia. Upon further investigation, it was revealed that approximately Rs. 2.3 crore had been withdrawn from her fixed deposit account. Additionally, numerous unauthorized transactions had been made, transferring funds to accounts belonging to strangers.
Investigation and Arrest
The Cyber Crime Unit of the Crime Branch initiated an investigation based on the woman’s complaint. A detailed analysis of bank records and related documents led to the identification of Nayak as the primary suspect. The 39-year-old, a resident of Samanta Sahi, Buxibazar in Cuttack, was taken into custody.
Nayak, a banking veteran with 20 years of experience, had been working at Axis Bank for the past six years. Investigators revealed that he had built strong relationships with customers over time, earning their trust to access their accounts fraudulently.
Methods Used by the Accused
According to officials, Nayak manipulated account access by changing the registered mobile numbers linked to the victim’s accounts. This allowed him to control notifications and transactions without raising suspicion. He transferred funds from the complainant’s account to Sumitra Khuntia’s account at HDFC Bank and then diverted the money to his personal accounts.
Further investigation revealed that Nayak used approximately Rs. 1 crore of the stolen funds to purchase insurance policies in the names of individuals he trusted. He also opened additional savings accounts to siphon off the stolen money.
Official Statement
“The accused exploited his position as a Relationship Manager to defraud the customer. By manipulating account details and gaining unauthorized access, he transferred funds into accounts under his control. His actions demonstrate a systematic breach of trust,” stated an official release from the Crime Branch.
Banking Community on Alert
This incident has raised serious concerns about customer safety and the misuse of privileged access by banking staff. The Crime Branch has urged customers to remain vigilant, monitor their account activities regularly, and report any suspicious transactions immediately.
Next Steps
Nayak is currently in police custody, and the investigation is ongoing to trace other potential victims and recover the misappropriated funds. Authorities are also probing whether Nayak had accomplices within or outside the bank.
This case serves as a stark reminder of the importance of exercising caution, even with seemingly trusted individuals in positions of authority. Customers are advised to keep their banking credentials secure and verify transactions independently.
Frauds are perpetrated by banking officials because they hold higher positions and therefore customers trust.
In private sector banks the banks provide customers with services of relationship manager. This post is higher than the normal officer in the branch and hence customers start respecting and believing the officials concerned. Such officials after ensuring full faith of customers start playing mischief especially with aged customers because such customers become forgetful and can be manipulated easily.
Its very difficult to ensure a good bank officials.