
Gurgaon: In recent cyber fraud investigations, several bankers have been arrested for their alleged involvement in fraudulent activities. The city police have taken this matter seriously and have written to the managing directors of four private banks, namely Yes Bank, ICICI Bank, RBL Bank, and Kotak Mahindra Bank. The purpose of the letter is to request their appearance in person next week to explain why legal action should not be taken against them.
Role of Bankers in Cyber Fraud Cases
The role of bankers came under scrutiny when investigators noticed that the account holders involved in fraudulent transactions were not aware of opening such accounts. Upon further investigation, it was discovered that the bankers had assisted cyber criminals in opening these accounts. In each case, the bankers charged a significant commission for their services, indicating their awareness of their involvement in illicit activities.
Victims of Fraudulent Investment and Task-based Schemes
Numerous individuals have fallen victim to fraudulent schemes promising high returns on investments or task-based opportunities. The city police have taken a proactive approach by not only arresting the cyber criminals but also holding the bankers accountable for their role in these cyber fraud cases. This makes the city police the only law enforcement unit in the country to arrest bankers alongside other accused individuals in such cases.
Exposing the Role of Bankers
During the investigation, it was discovered that the employees of Kotak Mahindra Bank’s MG Road branch were involved in fraudulent activities. They were subsequently arrested, and during the interrogation, they confessed to the involvement of several other bankers in similar fraudulent acts. Recognizing that bank accounts are a crucial component in cyber frauds, the police decided to investigate the criminal activities of bankers in such cases.
Violations of KYC Norms
In light of the recent arrests, the city police have written to the managing directors of Kotak Mahindra Bank, ICICI Bank, RBL Bank, and Yes Bank. The purpose of this letter is to request their personal appearance and an explanation as to why legal action should not be initiated against them for clear violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) norms.
Bankers’ Methods and Tactics
During the ongoing investigations, the police have found that the bankers accused of aiding cyber criminals opened bank accounts using identification and address proofs collected from factory workers and laborers. They even gained access to the bank accounts of daily-wage workers by offering them money. Additionally, the police noticed the use of fake IDs, address proofs, and forged signatures to open bank accounts, further exposing the deceptive tactics used by these individuals.
Bank Responsibilities and Accountability
The Deputy Commissioner of Police (Cyber Crime), Siddhant Jain, emphasized that bank managements have a responsibility to safeguard their clients’ money and protect it from cyber criminals. If bank employees are involved in criminal activities and aiding fraudsters, it is the duty of the bank managements to explain why action should not be taken against them. The police are determined to hold the responsible parties accountable for their actions in order to protect the public and maintain the integrity of the banking system.
Well firstly if a cyber crime is reported and a police complaint filed. The amount under the crime to be immediately returned to the customer.
It is observed that in many cases when a cyber fraud is reported by the customer. Undue delay in taking action is observed.
1. they want a report to be filed with the cyber police
2.Banks brings in lot of rules for refund and does not care to inform the bank which has received the credit to freeze that much amount in the account.
Hence a nationally a service branch to be created with all the banks representatives at one place along with cyber police so that any fraudulent activity is addressed immediately
Till today it is heard from various persons who are victims of cyber frauds but this news is shocking for all of us that despite of daily routine double entry system of checking and Banks’ internal Audit and various statements
sent to RBI time to time, still the cases of cyber frauds in customers’ a/cs happened. It clearly reveals the idiom “thief thief cousins”
secondly, had the employees/officers been remained on ten days mandatory leaves ?
The Management of these Banks must deliver this case for investigation to CBI.
Administrative officer ,Customer liability investigation center ,4th floor ,SBI,LHO ,BHOPAL has done nothing in defraud of total 182900 dt 28th November 2023,from old pensioner 74 yes age ,DAMOH M.P pincde 470661
49999+49999 defraded on 10 April 2024 from same Customer of SBI,DAMOH M.P
Same SBI PENSIONER, opened account with HDFC BANK LTD ,DAMOH M.P in 2011.reason arbitrary ceiling of work fixed by SBI STAFF.
On 7 April 2024 Rs 50000,50000,50000,50000,4000 debited my savings account at HDFC BANK ACCOUNT, DAMOH M.P.
Name of 4 person appeared in sms alert
Sbi DAMOH pensioner, age 74 years defraded for Rs 182900 on 28th November 2023.
for Rs 204000 on 7 April 2024 of HDFC BANK
for Rs 99998 ie 100000 on 10 April 2024.
Thus total amount of money defraded for Rs 486898
How amt will be recover by bank in trust SBI DAMOH MAIN BR CODE 00355 AND HDFC BANK LTD CODE NO 0914
Yes. Private banks especially Kotak & Axis are opening large number of accounts of cyber criminals. They don’t take action if any crime is reported. Highly indifferent and so criminals are enjoying
They even do not co operate in promptly blocking the accounts when informed.
It is always the top management responsible for frauds in Bank. But they escape by taking action against the lower level employees. That too when they were not able to protect these stooges as accountability may fall on them. Many a times they harass and punish upright employees who brings out such irregularities, using their administrative powers, who are an hinderance to their agenda. Many of BOB frauds are due to unreasonable target fixing. It is high time Police take action against such elements. For refusing to compromise SWIFT security, due to the conditions deliberately created using their administrative powers,and proceeding on leave eligible giving the same as reason for proceeding on leave was removed from service some 15 years back. Nirav Modi scam of 13000 crore in PNB was due to similar compromise. And RBI fined several banks Crores for not adhering to time line to correct the SWIFT security. And on challenging in Court the removal from service the High Court was magnanimous to order” since the employee is stickler for rules he can be given Golden hand shake of Compulsory retirement as removal from service is disproportionate” manipulation of words with same effect to justify Injudtice. When such a system prevails in the country and Judiciary is more worried about protecting the rights of culprits than doing justice it is no wonder such frauds will flourish. Regulators are also more worried about prevention measures, to treat every one as culprit, which is worse than decease, providing and facilitating further better opportunities and ways of frauds than exemplory punishing the culprits to prevent such crimes.
First of all the advertisements in social.media tempting the gullible should be filtered for genuineness by respective social media platforms.
Each Branch must have an internal auditor and a vigilance officer. Internal monthly audit report should be submitted. Branches must have enough staff to service their customers and also enough waiting space arrangements for senior citizens. Atleast two desks in a branch must be catering only to senior citizens