Cybercriminals are adopting a new form of fraud that combines mobile phone theft with social engineering, putting senior citizens and people with limited knowledge of technology at particular risk. Investigations by the Hyderabad Police cybercrime wing have uncovered organised gangs that allegedly steal mobile phones in public places and then attempt to access victims’ banking accounts using screen locks, banking information and OTPs. Three suspects have so far been arrested and five mobile phones recovered from them.
How Do Criminals Turn a Stolen Phone Into a Banking Fraud Tool?
According to police, members of the gangs identify potential victims at bus stations, railway stations, crowded RTC buses and other public places. They observe senior citizens using smartphones and carefully watch them entering screen-lock patterns, PINs or passwords. Once they have memorised the information, they allegedly wait for an opportunity to steal the phone.
If the stolen device remains locked, the criminals allegedly turn to social engineering. When victims call their stolen phones, one of the gang members may pose as a bus conductor, driver or Good Samaritan and claim that the device has been found. Under the pretext of verifying ownership, the criminals allegedly attempt to persuade victims to disclose their screen-lock passwords.
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Once the device is unlocked, the suspects search through applications and folders such as Gallery, Notes, Messages and WhatsApp for sensitive personal and financial information. Photographs of debit and credit cards, Aadhaar and PAN documents, banking records, passwords and PINs can potentially provide criminals with information needed for further financial fraud.
How Can a Stolen SIM and OTPs Put Bank Accounts at Risk?
The stolen SIM card and intercepted OTPs may then be used to reset banking credentials and UPI PINs. After gaining access to digital banking services, the criminals can transfer funds to other accounts. Police said the stolen money is subsequently routed through digital wallets, online gaming platforms and mule accounts to make the transactions more difficult to trace.
Cybercrime expert and former IPS officer Prof. Triveni Singh said such frauds demonstrate that criminals are exploiting human behaviour alongside technological vulnerabilities. According to him, a smartphone has effectively become a gateway to banking, identity documents and communication, making immediate action after a phone theft critical. Senior citizens, in particular, should never disclose their screen-lock passwords, OTPs or UPI PINs to unknown individuals, even if the caller claims to be helping recover a lost device.
Police said these gangs often operate through specialised teams, with different members responsible for identifying victims, stealing phones, obtaining passwords, facilitating banking transactions and withdrawing the proceeds. Such division of responsibilities allows the fraud operation to function as an organised network and makes tracing the individuals involved more difficult.
What Should You Do Immediately If Your Phone Is Stolen?
Authorities have urged citizens never to share screen-lock passwords, OTPs or UPI PINs with anyone. They have also advised people to avoid storing photographs of bank cards, Aadhaar, PAN cards, passbooks and other sensitive documents in their phone Gallery or Notes applications. Keeping such information away from smartphones can reduce the consequences of device theft.
If a mobile phone is stolen, users should immediately contact their telecom operator and block the SIM card. They should also inform their bank and request the temporary blocking or freezing of mobile banking, UPI and other digital banking services linked to the device.
Police have further advised victims to block the stolen handset through the Central Equipment Identity Register (CEIR) portal. Blocking the device can prevent it from being used on mobile networks and may also assist authorities in tracing the handset.
Experts said the hybrid nature of this fraud makes it particularly dangerous because the stolen smartphone itself can become a gateway to financial accounts. A criminal who obtains both the device and the information needed to unlock it may gain access to a significant amount of personal and financial data.
The incident highlights the importance of using strong and private screen-lock credentials, avoiding the storage of sensitive financial documents on mobile phones and taking immediate action following theft. Victims should contact their telecom provider, bank and law enforcement authorities rather than relying on unknown individuals claiming to have recovered the device.
With cybercriminals increasingly combining physical theft with digital manipulation, awareness remains a critical line of defence. A stolen phone should be treated not merely as a lost device, but as a potential security threat requiring immediate action to protect banking accounts, identity documents and personal information.
