Cyber Crime Police in Ghaziabad have identified 31 accounts in Kotak Mahindra Bank that were being used for cyber fraud. These accounts showed transactions of more than ₹25 lakh and were rented out to fraudsters. Investigations suggest involvement of bank employees in facilitating the misuse. FIRs have been filed against the account holders and two people have been arrested so far.
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How the Racket Operated
The 31 identified accounts are part of a larger scheme in which fraudsters rent bank accounts from people, often offering them a commission (about 20-30 percent) of the cheated amount. The account holders allow the fraudsters to use their accounts so that money moved via scams ends up there. In many cases fake documents were used to open the accounts. Authorities suspect that without help from inside the bank, these accounts would not have been approved.
Investigators believe that more than 300 bank accounts in Kotak Mahindra Bank alone were used in similar activities. Beyond that, police are tracking suspicious accounts in Indian Bank and other banks. In Indian Bank, 42 accounts have already been flagged for investigation. Overall, more than 1,200 such accounts in this district are estimated to have been used by cyber criminals.
Action Being Taken
Police are examining the role of bank staff in the opening of these fraudulent accounts. Charges are being filed under sections related to fraud and cheating. Two individuals have been arrested: one from Hapur district who rented out 14 bank accounts, and another accused of being part of the operation using these accounts for fund transfers.
Officials warn that such rented accounts help fraudsters to launder money, evade detection, and shift blame. Citizens are urged to avoid renting their bank accounts for someone else, to verify account-opening documents, and report any suspicious calls or offers asking them to lend bank accounts.
