Baitool Police Bust Indore-Based Cyber Gang; 15 Phones, 25 SIMs, 21 ATM Cards Seized; Serious Lapses in Banking Oversight Revealed
In a major crackdown, the Baitool Police in Madhya Pradesh have uncovered a cyber-fraud operation that has exposed significant vulnerabilities in the banking system. Investigators found that the accused exploited seven dormant bank accounts—including one belonging to a deceased individual—to conduct illegal transactions worth nearly ₹10 crore. Three suspects have been arrested, and a large quantity of digital devices and banking materials have been seized.
Fraud Through Dormant and Deceased Accounts
According to police officials, fraudulent transactions amounting to ₹9.84 crore were routed over several months. What has shocked investigators is that many of the accounts used for these high-value transfers had remained inactive for years. One of the accounts belonged to a deceased person, yet continuous transactions were carried out without triggering alarm in the banking system.
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The case exposed glaring gaps in KYC compliance, account monitoring and verification protocols. Police are now trying to determine how the accused gained access to these accounts and how such large transactions went unnoticed.
Arrests and Heavy Seizures Reveal an Organized Network
Three individuals from Indore and Baitool have been arrested in the operation. The seized material indicates a well-structured cybercrime network. Items recovered include:
- 15 mobile phones
- 25 SIM cards
- 21 ATM cards
- 11 bank passbooks and 7 cheque books
- 2 laptops, 2 POS machines
- 69 ATM deposit slips, routers and registers
- ₹28,000 in cash
The cyber cell believes the network was operating across multiple districts and that the total fraud amount could exceed ₹10 crore.
How the Fraud Came to Light
Baitool SP Virendra Jain said the case surfaced when a tribal labourer from KD village, Vishram Eve, approached the police in fear. Nearly ₹2 crore had passed through his bank account in the past month, despite the fact that he was unaware of any such transactions.
Following the complaint, the police launched a technical investigation and detected abnormal patterns in multiple accounts. This helped uncover the larger network operating behind the scenes.
Exploitation of Labourers’ Accounts
Investigations revealed that the main accused, a resident of the Tekadi area, targeted poor labourers and tribal families. He either persuaded them to open new accounts or took control of their old, inactive ones.
Once he gained access, he visited the bank and changed the mobile number linked to the account. With the mobile number altered, the accused began receiving:
- All SMS alerts
- OTP notifications
- All banking messages
This gave him complete control over the account. The accused then used these accounts to route large-scale transactions. In just the last five months, more than ₹2 crore was circulated through these accounts.
Indore-Based Operator Controlled the Entire Operation
Police said the gang was being operated from Indore. A key member, identified as Ankit, managed all the accounts through mobile banking apps. Different individuals were assigned to withdraw cash using the recovered ATM cards. The 21 ATM cards seized indicate a wide network of exploited account holders.
Banking System Under Scrutiny
The case has raised major concerns over the banking system’s oversight. Key issues highlighted include:
- Lack of monitoring of dormant accounts
- Ineffective procedures for closing accounts of deceased customers
- Weak verification for mobile number changes
Cyber experts say the fraud could have been detected early if banks had conducted stronger KYC and account audits.
More Arrests Likely as Probe Widens
Police believe the cybercrime network is larger than currently identified and may have links to multiple districts and states. A detailed audit of all associated accounts is underway, and the role of bank officials is also being examined.
Authorities say that more arrests are expected in the coming days.
