Hathras, India — In a case that has stunned both police and bankers, a 23-year-old man who ran a small stall selling samosas and sweets is accused of exploiting banking loopholes to orchestrate a fraud worth nearly ₹5 crore.
Police say the man, identified as Akash Kumar, opened a current account with HDFC Bank and secured overdraft facilities. Within just three weeks, he allegedly moved funds in rapid succession often in tranches of ₹50 lakh funneling money into mutual funds, SIPs and digital wallets linked to acquaintances.
The scheme unraveled when a friend asked to borrow ₹3 lakh and, instead, received an inexplicable transfer of ₹10 lakh. Suspicion mounted, and the friend filed a complaint with police. Shortly after, the bank froze Kumar’s account, and investigators moved in. Authorities say nearly ₹2 crore has been seized so far.
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A Breach of Trust in the Banking System
HDFC officials have launched an internal review, acknowledging that the scale and speed of the transactions should have triggered alerts. “All questionable transfers are under scrutiny,” said Ajit Kumar Singh, a cluster head at the bank. “Anyone found complicit or negligent will face strict action.”
Expert View: A Systemic Weakness
Cybercrime expert and former IPS officer Professor Triveni Singh warned that the case exposes vulnerabilities in India’s financial monitoring systems.
“Overdraft facilities are designed to support small businesses, but without real-time oversight they can be exploited for fraud. When a petty trader suddenly begins moving tens of lakhs or crores, the system should raise red flags instantly. This incident shows that banks must not only strengthen technology but also train staff to recognize the evolving tactics of financial crime.”
Broader Implications
The case has prompted debate in financial circles over whether India’s banking sector is adequately prepared to police fraud in smaller towns, where digital transactions are expanding rapidly. That someone running a roadside shop could allegedly manipulate the system to move crores underscores both the promise and the peril of a digitizing economy.