Bank manager among two more held in Hyderabad in Rs 175 crore fraud

The Telangana Cyber Security Bureau on Wednesday arrested two more persons including a bank manager in connection with Rs 175 crore fraud. 

Upadhya Sandeep Sharma, a gym trainer, and Madhu Babu Gali, the manager of State Bank of India’s Shamshergunj branch have been arrested for their alleged involvement in the case. With this, the number of arrests in the case rose to four.

A case was registered against them under 66D of the IT Act, and sections 318(4), 319(2), and 338 of the BNS Act at the Cyber Crime Police Station, Hyderabad, based on a suo motto complaint, Telangana Cyber Security Bureau Director Shikha Goel said.

The branch manager of SBI Shamsheergunj colluded with fraudsters, facilitating the opening of current bank accounts, aiding in the withdrawal of funds, and orchestrating the diversion of money, all in exchange for commissions, she said.

The fraud was busted by the Cyber Security Bureau with the arrest of two persons - Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir - on August 24.

The Cyber Security Bureau's data analysis team detected numerous complaints reported on the NCRP portal against six bank accounts in the SBI's Shamsheergunj branch. The investigators found that large sums of money were transacted through these accounts in March and April 2024. The account holders were suspected of being involved in large-scale cyber fraud. Approximately 600 complaints were linked to these accounts.

According to the Cyber Security Bureau, the main fraudster, operating from Dubai, and his five associates were actively involved in luring poor people into opening bank accounts and supplying them for use in cybercrimes and hawala operations on a commission basis. It said Shoeb played a key role in opening bank accounts and preparing all necessary documents. After opening the accounts, the signatures of the account holders were obtained on the cheques, which were then kept in the custody of one of the associates.

Some of the money was sent to Dubai through cryptocurrency. The associates withdrew the money following the directions of the main fraudster and distributed it to various individuals through his agents.

Following the main fraudster’s directions, Shoeb and other associates convinced some poor individuals to open six current accounts in the SBI's Shamsheergunj branch in February 2024, luring them with commissions.

In March and April, significant transactions occurred in these six accounts, totalling approximately Rs 175 crore.

The Cyber Security Bureau has cautioned people not to open a bank account for someone else or engage in suspicious transactions. "If you have already opened a mule account, report it to 1930 or cybercrime.gov.in. Be cautious of unsolicited offers to open bank accounts. Verify the identity and credentials of anyone asking you to open an account and monitor your account activity regularly," it said.