Ahmedabad: A major high-tech cyber fraud worth ₹7.34 crore has come to light at a cooperative bank in Bhavnagar, Gujarat, where a critical software vulnerability was allegedly exploited to siphon off funds. Investigators have revealed that the accused targeted dormant bank accounts, created fictitious balances within the core banking system, and swiftly transferred the money across multiple accounts to evade detection. Four accused have been arrested in the case, including three from Ahmedabad and one from Mumbai.
According to investigators, the arrested individuals have been identified as Adnan Sheikh (24), Rubina Sheikh (31), Sushilkumar Meghwal (32), and Kishor Pardeshi (43). Preliminary findings suggest that the group operated as an organized cybercrime network, identifying loopholes in banking systems and executing large-scale financial frauds. Authorities believe the network may have links across multiple states.
The probe revealed that the accused specifically targeted bank accounts that had remained inactive for a long period. They first changed the registered mobile numbers linked to these accounts, gaining full control. Subsequently, they manipulated the system to generate a fake balance of approximately ₹7.35 crore, closely matching the total fraud amount detected.
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Once the fictitious funds were created, the accused transferred the money into 135 different bank accounts. Investigators said the group used a “layering” technique—routing funds through multiple accounts—to obscure the origin of the money and make tracking difficult. Officials noted that the use of such a large number of accounts indicates a well-planned operation involving a coordinated network rather than isolated individuals.
Further examination of mobile phones and digital devices seized from the accused led to the discovery of details linked to 42 additional bank accounts used in the operation. Analysis through the national cybercrime portal also suggested that the same network could be linked to more than 15 cyber fraud cases across India, involving an estimated additional ₹4 crore.
These cases span several states, including Karnataka, Gujarat, Uttar Pradesh, Haryana, Andhra Pradesh, Tamil Nadu, Punjab, and Maharashtra. Investigators believe the group had been active for a considerable period, executing cyber frauds using similar methods in different regions.
The investigation also uncovered the use of “mule accounts.” The accused allegedly lured individuals with monetary incentives to rent out their bank accounts, ATM cards, cheque books, and SIM cards. These accounts were then used to route fraudulent funds, making it difficult for authorities to trace the real beneficiaries.
So far, authorities have managed to freeze approximately ₹2.04 crore of the defrauded amount, while efforts are ongoing to trace and recover the remaining funds. Officials have expressed concern that the software vulnerability exploited in this case could potentially exist in 14–15 other banks across the country, prompting a broader investigation into similar risks.
Authorities have also issued an advisory to the public, urging people not to share or rent out their bank accounts, ATM cards, cheque books, or SIM cards to anyone. In case of any cyber fraud, citizens are advised to immediately report the incident on the national helpline number 1930, as prompt reporting—especially within the first hour—significantly increases the chances of fund recovery.
