A system created to quickly stop money stolen through cyber fraud is facing operational gaps after a joint review found that several banks have not provided essential banking and technical access to their representatives posted at the Cyber Fraud Mitigation Centre.
The review found that 14 banks had not provided Core Banking System access to their representatives, while six banks had not provided laptops. The lack of these facilities could slow the verification of suspicious accounts and efforts to stop stolen money from being transferred further.
Why Does Every Minute Matter?
The first few minutes after a cyber fraud can be critical.
Once money leaves a victim’s account, fraudsters may transfer it rapidly through multiple accounts. This makes immediate identification of suspicious accounts and quick restrictions on transactions important.
Bank representatives stationed at the CFMC are expected to help trace and stop such transfers.
Which Banks Lack CBS Access?
According to the joint review report, State Bank of India, Punjab National Bank, Union Bank of India, Indian Bank, Canara Bank, Bank of India, UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, IDBI Bank, Yes Bank, Bandhan Bank and Uttar Pradesh Cooperative Bank have not provided CBS access to their representatives posted at the CFMC.
Without such access, representatives may face difficulty in immediately checking suspicious accounts and reviewing transactions.
What Is CBS Access?
CBS stands for Core Banking System, the centralised system banks use to manage customer accounts and transactions. Access to this system allows authorised bank representatives to quickly check account status and transaction details. In cyber fraud cases, such access can help representatives identify suspicious fund movements and coordinate action to place a hold or freeze on the money before it is transferred further.
Which Banks Have Not Provided Laptops?
The review also found that Union Bank of India, UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, IDBI Bank and Bandhan Bank had not provided laptops to their CFMC representatives.
The absence of basic technical resources, combined with lack of CBS access in some cases, could affect the speed at which suspicious transactions are examined.
What Had Banks Been Asked to Do?
The Cyber Crime Director General had directed banks on August 5, 2026, to provide CBS access and necessary information technology resources to representatives deployed at the CFMC.
Despite these directions, the joint review found gaps in the facilities available to representatives of several banks.
The findings have raised questions over the level of operational support being provided to a mechanism designed for rapid intervention in cyber fraud cases.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
How Are Fraudulent Funds Stopped?
After receiving information about a cyber fraud complaint, bank representatives at the CFMC examine suspicious accounts and transactions.
Once stolen funds are identified, the process of placing a lien or hold on the amount can begin. If the money is about to move into another account, freezing it before the next transfer is also part of the response.
Representatives also coordinate between police and the concerned bank.
Immediate access to internal banking systems is important because any delay can give fraudsters additional time to move the money elsewhere.
What Is the CFMC?
The new CFMC and 1930 helpline centre was launched in Uttar Pradesh on June 1, 2026.
Its purpose is to establish immediate coordination between police, banks and financial institutions when a cyber fraud complaint is received.
Under the system, suspicious funds can be placed under lien or frozen while related accounts and transactions are monitored.
How Much Money Has Been Saved?
Nationwide, more than 32.80 lakh complaints had been registered through the citizen financial cyber fraud reporting and management system by June 2026.
More than ₹11,158 crore had reportedly been saved from being lost to fraud.
A Money Restoration Module was also launched in April 2026 to facilitate faster return of funds that had been placed on hold or frozen.
Also Read: https://the420.in/cyber-fraud-money-restoration-module-frozen-funds-online-refund-request/
Why Do These Banking Gaps Matter?
The effectiveness of a fraud-blocking system depends heavily on speed.
If representatives posted at the CFMC do not have access to core banking systems or basic technical resources, delays can arise at a stage when stolen money may already be moving through multiple accounts.
Addressing the gaps identified in the review will therefore be important for strengthening coordination between police and banks and improving the chances of stopping fraudulent funds before they disappear further into the financial system.
The420 Insight: Every Minute Can Save Your Money
For cyber fraud victims, quick reporting remains crucial because stolen money can move through several accounts within minutes. Victims should immediately contact the 1930 helpline after discovering a fraudulent transaction. At the same time, banks must ensure their CFMC representatives have the system access and technical resources needed to act quickly, because even a short delay can reduce the chances of stopping the money.
About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.
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