Vijayawada cybercrime police have arrested a man for allegedly orchestrating a large-scale banking fraud involving loans worth ₹5.28 crore obtained through fake and mule bank accounts. The accused has been identified as Neelam Pawan Kumar, a resident of Guduru village in Krishna district, who was living in Vijayawada. Investigators found that he had opened 26 savings accounts across multiple bank branches since 2019 and used them to fraudulently access loans and credit card facilities.
According to police officials, the accused exploited gaps in the banking verification system by submitting forged salary slips, identity documents, and other fabricated records. Having previously worked in the e-Seva sector, he allegedly used his technical knowledge of computers and digital documentation to create convincing fake paperwork. Using these documents, he managed to secure multiple loans and later defaulted on repayments.
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The investigation revealed that the fraudulent loans were obtained from different bank branches in structured amounts. Around ₹1.76 crore was taken from the Gunadala branch, ₹1.32 crore from the Eluru Road branch, and ₹2.20 crore from the main branch, taking the total fraud amount to ₹5.28 crore.
During the operation, cybercrime police recovered a significant amount of assets and documents from the accused. The seizure includes 34 property documents valued at nearly ₹7 crore, one car, one motorcycle, 122 grams of gold, 927 grams of silver, nine ATM cards, and ₹11,500 in cash. Officials said the recovery highlights the scale and sophistication of the financial fraud.
Investigators also discovered that the accused had a prior criminal record, with multiple cases already registered against him in Guduru, Machilipatnam Town, Bhavanipuram, and Krishnalanka police stations. This indicates a consistent pattern of fraudulent and illegal activities over time.
Police stated that the accused had been planning the scam for a long period and deliberately used mule accounts to hide the money trail. These accounts were used to circulate funds across multiple channels, making it difficult for investigators to trace the flow of money back to its source.
The accused is currently being interrogated, and authorities are trying to determine whether other individuals were part of the network. Investigators are also examining whether similar fraudulent loans were obtained from other bank branches using the same modus operandi.
The case has once again highlighted the growing threat of digital banking fraud and the misuse of mule accounts in financial crimes. Experts believe that stronger verification systems and continuous monitoring are necessary to prevent such large-scale scams in the future.
Cybersecurity specialists have emphasized the need for stricter Know Your Customer (KYC) procedures and improved fraud detection mechanisms within banking systems. With the rapid expansion of digital banking services, such cases are increasing, raising serious concerns about financial security.
Authorities are now also probing whether the accused was part of an organised syndicate that systematically targeted banking institutions using forged documentation and mule accounts to sustain long-term financial fraud without detection.
