The Cyber Excellence Centre of Gujarat Police has uncovered a highly sophisticated interstate cyber fraud syndicate that allegedly targeted more than 15 banks across India and siphoned off nearly ₹210 crore through advanced digital manipulation of banking systems. The gang is believed to have operated for a long period, systematically exploiting vulnerabilities in digital banking infrastructure.
According to officials, the network had spread across multiple states including Gujarat, Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Punjab, Haryana, and Andhra Pradesh. So far, seven accused have been arrested, while the main kingpin is still absconding and is believed to be operating the network remotely.
Investigators revealed that the accused exploited weaknesses in the Core Banking System (CBS) used by financial institutions. They reportedly identified dormant or inactive bank accounts and then altered the mobile numbers linked to those accounts, effectively taking control without the knowledge of the actual account holders.
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₹7 Crore Siphoned from Coop Bank in One Night
Once access was gained, the gang allegedly manipulated internal banking records and generated unauthorised virtual credit within the system. In one striking incident, nearly ₹7 crore was siphoned from a cooperative bank in a single night, exposing the speed and coordination of the operation.
The stolen funds were then routed through more than 135 mule accounts. These accounts were allegedly rented from individuals who were lured with monetary incentives to allow the use of their bank details. The money was subsequently broken into multiple layers and transferred across different accounts and banks to obscure the financial trail.
273 Cybercrime Cases Linked to ₹210 Cr Fraud
Investigators also found that the syndicate is linked to at least 273 cybercrime cases registered across the country, indicating that this was not an isolated operation but a long-running and structured criminal network. The total financial loss is estimated to be around ₹210 crore.
During coordinated raids, police recovered several key materials including bank passbooks, debit cards, cheque books, and mobile phones believed to have been used in executing the fraud. Authorities have also frozen over ₹2 crore of suspected proceeds to prevent further diversion of funds.
Core Banking System Exploitation Exposed
Preliminary findings suggest that the operation was not based on traditional phishing techniques but on system-level exploitation. The accused allegedly manipulated transactions from within the banking software environment, allowing them to alter records before detection systems could raise alerts.
Cyber experts assisting the investigation have stated that such incidents highlight critical gaps in banking security frameworks. They emphasised that stronger monitoring of dormant accounts, improved authentication systems, and continuous system audits are essential to prevent such large-scale breaches.
Officials further confirmed that the investigation is still underway and digital forensic analysis is being conducted to trace communication channels, transaction routes, and possible international linkages. Efforts are also being made to identify other associated groups operating across different states.
Authorities believe that inter-agency coordination played a crucial role in identifying patterns and tracing the movement of funds across multiple banking channels. More arrests are expected as the probe expands.
The case is being considered one of the most significant cyber fraud crackdowns in recent years, raising serious concerns about the security of digital banking infrastructure and real-time transaction monitoring systems.
Officials added that early indications suggest possible use of automated tools and credential manipulation techniques to bypass security alerts. The use of dormant account takeover strategies is also emerging as a growing trend in large-scale financial fraud cases.
The investigation continues as authorities work to fully dismantle the network and identify all remaining operatives involved in the syndicate.
