A major banking fraud has surfaced in Telangana’s Nalgonda district, raising serious concerns over internal security lapses in the banking system. Four individuals, including a housekeeping staff member, a branch manager of the State Bank of India (SBI), and two associates, have been arrested for allegedly siphoning off approximately ₹2 crore 65 lakh 55 thousand 268 from dormant bank accounts. Police have recovered nearly ₹2 crore 42 lakh in cash from their possession.
Dormant accounts allegedly became easy prey
According to investigators, the entire scheme was executed in a highly coordinated manner by exploiting internal access to the bank’s systems and confidential customer data.
Sources revealed that the prime accused, Lendala Chakrapani, who had been working at the branch for nearly five years in a housekeeping and technical support role, had developed a deep understanding of internal banking operations. During this period, he allegedly collaborated with a senior bank official to identify inactive accounts and mark them as potential targets.
Once these accounts were shortlisted, the accused reportedly created forged identity documents in the names of account holders and altered registered mobile numbers linked to those accounts. This allowed them to gain control over account verification systems and access digital banking platforms.
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Fake IDs, changed mobile numbers, and YONO transfers helped siphon crores
Using the SBI YONO app, the accused allegedly initiated multiple unauthorized fund transfers, gradually moving money from dormant accounts into several intermediary accounts to avoid detection. These intermediary accounts were reportedly provided by two associates, who allowed their bank accounts to be used in exchange for commissions, helping further obscure the money trail.
A KYC alert cracked open the scam
The fraud came to light after one account holder received a KYC update alert and immediately contacted the bank. This triggered an internal audit, which uncovered large-scale irregularities across multiple accounts. Preliminary findings suggest that the total diverted amount stood at ₹2 crore 65 lakh 55 thousand 268.
Following the complaint, technical analysis and digital transaction tracking were used to trace the flow of funds, ultimately leading investigators to the accused individuals. During raids, authorities recovered a substantial portion of the stolen money, hidden in residential premises and other locations.
Reignited fears over insider threats inside India’s banking system
Experts in banking security and cyber fraud have noted that such cases are increasingly shifting from external hacking attempts to “insider threats,” where employees with system access play a crucial role in facilitating financial crimes.
Cybercrime expert and former IPS officer Prof. Triveni Singh stated that such cases are particularly dangerous because they involve misuse of both system vulnerabilities and internal credentials. According to him, when login credentials and customer data begin to leak from within the banking ecosystem itself, the entire digital security framework becomes vulnerable.
All four accused have been sent to judicial custody, while further investigation is underway to determine whether more individuals were involved in the wider network or if the operation was limited to this group alone.
