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Bengaluru Police Bust Rs 12-Crore Fraud, Expose Bank Manager-Cyber Criminal Nexus
Bengaluru police have arrested four individuals, including an Axis Bank employee, in connection with a Rs 12-crore fraud targeting Dreamplug Paytech Solutions, the operator of the CRED payment platform. The accused exploited security loopholes and manipulated official documents to execute unauthorized transactions across multiple bank accounts. This elaborate financial crime highlights the growing sophistication of cyber fraud and the critical need for enhanced corporate vigilance.
Bengaluru police apprehended four individuals, including an Axis Bank relationship manager, for orchestrating a Rs 12-crore fraud involving Dreamplug Paytech Solutions. The company operates the CRED platform, widely used for managing credit card payments. The scam was uncovered following suspicious transactions detected in Dreamplug’s accounts.
Key Accused and Their Roles
- Vaibhav Pithadiya: The alleged mastermind, a relationship manager at Axis Bank, Rajkot, who accessed sensitive client data, including account details and transaction credentials.
- Neha Ben Vipulbhai: A banking agent who supplied confidential account information to facilitate the fraud.
- Shailesh: An insurance agent specializing in forging critical documents like signatures and official seals to bypass banking protocols.
- Shubham: A commission agent responsible for creating “mule accounts” across various banks, enabling the laundering of stolen funds.
How the Fraud Unfolded
The scam came to light when Dreamplug’s executives noticed unauthorized withdrawals totaling ₹12.2 crore from their Axis Bank accounts. The culprits manipulated banking procedures through:
- Forged Documents: They submitted fabricated board resolutions and signatures to gain access to the accounts.
- Modified Contact Details: Requests were made to alter the registered email and mobile number for OTP verifications, ensuring they intercepted all security alerts.
Between October 29 and November 11, 2024, the accused executed 37 transactions, attempting to siphon off Rs 15.2 crore. Despite Axis Bank’s red-flagging system, Rs 12.2 crore was successfully withdrawn before the fraud was stopped.
Investigative Breakthrough
The police traced the fraud to email IDs and mobile numbers linked to suspicious transactions. The breakthrough came when investigators identified the use of “mule accounts,” strategically spread across different banks to disperse and launder the stolen money. The account changes were processed at branches in Gujarat, raising questions about oversight and compliance.
Corporate and Banking Responsibility
This incident underscores vulnerabilities in banking systems and highlights the responsibility of financial institutions to strengthen internal processes. The reliance on manual verification and lapses in detecting forged documents were exploited to devastating effect.
Police Action and Corporate Measures
The Central East Division (CEN) Police acted swiftly after receiving a complaint from Dreamplug’s executive Narasimha Vasanth Sastry. All accused were arrested, and efforts are ongoing to recover the siphoned amount. Dreamplug has pledged to enhance security measures to prevent similar breaches in the future.
Lessons for Businesses
This case serves as a cautionary tale for corporations handling large financial transactions. Stronger internal controls, regular audits, and advanced fraud-detection systems are essential in the fight against such sophisticated schemes.
As investigations continue, this case adds to the growing list of cyber and financial crimes, emphasizing the urgent need for corporate and banking sectors to invest in robust cybersecurity frameworks.
