This case lays the systemic vulnerabilities in India’s digital banking infrastructure, the Uttar Pradesh Police Cyber Cell has arrested four key operatives in a ₹1.93 crore fraud case involving ghost accounts and dormant bank savings. The accused, part of an interlinked gang operating across 11 states, allegedly manipulated bank protocols and exploited account dormancy to reroute funds using cloned identities, forged documents, and ATM withdrawals.
According to investigators, the syndicate’s modus operandi was both calculated and audacious: exploit inactive or minimally active savings accounts by impersonating the original holders through mobile number updates and falsified death records—then use the banking system’s blind spots to funnel funds.
Ghost Accounts, Real Money: Anatomy of the Fraud
The case began to unfold when a hotel owner, Aslam, filed a complaint at the Cyber Crime police station in Bulandshahr, alleging unauthorized transactions in his account. Upon investigation, SP Crime Naresh Kumar discovered that the accused, led by mastermind Navin aka David, were experts in creating fake identities and leveraging internal contacts in banks.
The gang would first identify dormant accounts often belonging to elderly or deceased individuals. Working in tandem with rogue bank employees, they would forge mobile number updates and get the account KYC (Know Your Customer) information altered. Then, citing health issues or death, they’d file formal applications for account deactivation or beneficiary changes, thus gaining full control over the funds.
Their reach extended far beyond Bulandshahr, with significant activity in Jammu, Kanpur, Gurugram, and Ambala. The accused used various means—RTGS, NEFT, and UPI—to divert funds. In just a few months, they managed to fraudulently siphon ₹1,93,53,570 from 11 states.
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A Cyber Cartel: Arrests, Interrogations, and Key Players
The police have so far arrested:
- Navin aka David, the alleged kingpin.
- Ankit Sharma (Bank Manager)
- Vishal (Banking staff)
- Subham Kaushik (Banking agent)
- And accomplices operating from multiple states.
They also seized over 20 chequebooks, 14 debit cards, and multiple ATM cards—all linked to the fraudulent accounts. Upon interrogation, the accused revealed that they used fake SIM cards, manipulated bank servers with the help of insiders, and used OTP intercepts to control transactions.
Police confirmed that multiple FIRs have now been filed, and further arrests are likely. The CBI and other enforcement agencies have been alerted, given the inter-state dimensions and potential links to previously unsolved cyber-financial crimes.
Banking System Loopholes: The Call for Reform
This scam isn’t the first of its kind, but the scale and the simplicity of execution are alarming. The fact that impersonation could go undetected within regulated banks highlights failures in the KYC and customer redressal systems.
Financial cybercrime experts have emphasized the need for systemic overhaul, including:
- Real-time AI-based anomaly detection in dormant accounts.
- Mandatory cross-verification of identity change requests.
- Stringent audits of mobile number and nominee changes in banks.
- Enhanced collaboration between banks and law enforcement agencies for early detection of coordinated cyber frauds.
An internal bank report, shared anonymously, confirmed that the bank staff involved had not followed prescribed escalation processes, thereby aiding the fraudsters either negligently or willfully.