In Nagpur, a major fraud case has been uncovered where a former outsourced employee of a public sector (PSU) bank misused the bank’s login credentials even after leaving his job. He used this access to file fake income tax refund claims worth approximately ₹5 crore, exposing major loopholes in the banking system.

How the Fraud Was Committed

• The ex-employee earlier handled TDS (Tax Deducted at Source) operations for deposit holders at the bank.
• After quitting, he retained access to the bank’s system because his login was not deactivated.
• He targeted senior citizen depositors whose accounts did not have PAN numbers linked.
• Since many elderly depositors have low incomes and are not liable to pay tax, their PANs were often missing.
• The fraudster inserted PANs and personal details of people he knew into these blank accounts.
• He then filed fake income tax returns to claim refunds using these details.

Why Senior Citizens Were Targeted

• Senior citizens often invest in fixed deposits (FDs), earning interest income.
• Banks deduct TDS on this interest, even if the individual’s total income is below the taxable limit.
• These individuals usually do not file tax returns, making it easy for the fraudster to manipulate their accounts without raising suspicion.

How the Fraud Was Detected

• The Income Tax Department noticed unusual refund claims during routine checks.
• Notices were sent to the individuals whose names were used and to the bank.
• Further investigation revealed that an ex-employee had misused his system access to commit the fraud.

Expert Opinion

According to Chartered Accountant Niteesh Agrawal:

• Currently, anyone can file tax returns for the financial year 2024-25.
• For previous years, special permission must be obtained from the Income Tax Department.
• This fraud highlights the need for stricter access control in banks, especially for employees who leave sensitive positions.

Important Points from this

• Banks must immediately deactivate system access when an employee resigns or is terminated.
• Senior citizens and other deposit holders should ensure their PAN details are updated with the bank.
• Better monitoring and security systems are required to prevent such frauds in future.

Conclusion

This shocking case shows that even after an employee leaves, if proper processes are not followed, banks can be exposed to serious frauds. It is a reminder for financial institutions to strengthen cybersecurity measures and for customers to stay alert and keep their information updated.

Authorities are now working on new methods to prevent such incidents from happening again.