In a shocking development, a branch manager of the State Bank of India (SBI) in Hyderabad, along with his associates, has been arrested for their involvement in a massive fraud case worth Rs 175 crore. This incident has sent ripples across the banking sector and raised serious concerns about security and integrity within financial institutions.
The Scam
The branch manager, Madhu Babu Gali, aged 49, who was stationed at the SBI branch in the Shamsheer Gunj area of Hyderabad, has been accused of colluding with a network of fraudsters. According to officers from the Cybersecurity Bureau Headquarters in Hyderabad, the manager facilitated the opening of current accounts, helped in the withdrawal of funds, and orchestrated the diversion of money. He did all this in exchange for commissions. This illegal activity was a well-planned operation involving multiple people and tactics to evade detection.
Who Else Was Involved?
Alongside the bank manager, a gym trainer named Upadhya Sandeep Sharma, aged 34, was also arrested. Both individuals have been charged in connection with this elaborate scam. The arrests were made after the Cybersecurity Bureau’s data analysis team noticed an unusual pattern of complaints on the National Cybercrime Reporting Portal (NCRP) against six specific bank accounts at the SBI Shamsheer Gunj branch.
How the Fraud Was Detected
The investigation revealed that these six accounts had seen large sums of money being transacted over just two months—March and April 2024. This raised red flags, leading the authorities to suspect that the account holders were involved in large-scale cyber fraud. Shockingly, around 600 complaints have been linked to these accounts, indicating the extensive nature of the scam.
The Mastermind and Modus Operandi
The mastermind behind this operation is believed to be based in Dubai. Working with five associates, this main fraudster targeted poor individuals, convincing them to open bank accounts in exchange for commissions. These accounts were then used for cybercrimes and hawala operations, which involve the illegal transfer of money.
The Cybersecurity Bureau, in its ongoing efforts to clamp down on cybercrime, arrested two more individuals, Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir, on August 24. Shoeb played a crucial role by organizing the opening of bank accounts and preparing necessary documents. Once the accounts were opened, they took signatures on cheques from the account holders, which were then kept with one of the associates. This allowed them to withdraw money and even send some to Dubai through cryptocurrency channels.
How the Money Was Moved
Following the instructions from the mastermind, the associates would withdraw money from these accounts and distribute it through agents. In February 2024, six current accounts were opened at the SBI Shamsheer Gunj branch. By March and April, a staggering Rs 175 crore had been funneled through these accounts, pointing to the scale of the operation.
A Warning to the Public
In light of this scam, the authorities have issued a stern warning to the public. They urge people not to open bank accounts on behalf of others or engage in any suspicious transactions. If someone has already been involved in opening a ‘mule’ account—a term used for accounts used to launder money—they should immediately report it by calling 1930 or visiting cybercrime.gov.in.
