A number of bankers have been arrested in recent cyber fraud investigations due to allegations that they were involved in fraudulent operations. The managing directors of Yes Bank, ICICI Bank, RBL Bank, and Kotak Mahindra Bank are among the four private banks that the city police have written to, demonstrating how seriously they regard this issue. The letter's objective is to ask them to come in person the next week to provide an explanation for why no legal action should be taken against them.
When authorities discovered that the account holders implicated in illegal activities were unaware that they had opened such accounts, the role of bankers came under investigation. It was found that the bankers had helped cyber criminals open these accounts after more inquiry. The fact that the bankers charged a sizable commission in each instance suggests that they were aware that they were involved in illegal activity.
Victims of
Fraudulent Investment and Task-based Schemes
Many people have been duped by schemes that promise large returns on investments or possibilities depending on tasks. In addition to apprehending the cyber criminals, the local police have shown initiative by making the bankers answerable for their involvement in these cyber fraud cases. As a result, the city police are the only law enforcement agency in the nation authorized to detain bankers in conjunction with other suspects in similar circumstances.
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During the investigation, it was
discovered that the employees of Kotak Mahindra Bank’s MG Road branch were
involved in fraudulent activities. They were subsequently
arrested, and during the interrogation, they confessed to the involvement of
several other bankers in similar fraudulent acts. Recognizing that bank
accounts are a crucial component in cyber frauds, the police decided to
investigate the criminal activities of bankers in such cases.
In light of the recent arrests, the
city police have written to the managing directors of Kotak Mahindra Bank,
ICICI Bank, RBL Bank, and Yes Bank. The purpose of this letter
is to request their personal appearance and an explanation as to why legal
action should not be initiated against them for clear violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) norms.
Bankers’ Methods and Tactics
During the ongoing investigations,
the police have found that the bankers accused of aiding cyber criminals opened
bank accounts using identification and address proofs collected from factory
workers and laborers. They even gained access to the bank accounts of
daily-wage workers by offering them money. Additionally, the police noticed the
use of fake IDs, address proofs, and forged signatures to open bank accounts,
further exposing the deceptive tactics used by these individuals.
Read More - Suspicious transactions detected in this bank,three staffs arrested
Bank Responsibilities and Accountability
The Deputy Commissioner of Police(Cyber Crime), Siddhant Jain, emphasized that bank managements have a
responsibility to safeguard their clients’ money and protect it from cyber
criminals. If bank employees are involved in criminal activities and aiding fraudsters,
it is the duty of the bank managements to explain why action should not be
taken against them. The police are determined to hold the responsible parties
accountable for their actions in order to protect the public and maintain the
integrity of the banking system.
