Ignored KYC, Verification: How Bank Officials Conspired With Cybercriminals
The accused include employees from Indian Bank, Bank of Maharashtra, Bandhan Bank, and IndusInd Bank.
· www.ndtv.comHyderabad:
Seven bank officials were arrested on Thursday for conspiring with cybercriminals and opening mule accounts in five such cases in Hyderabad.
The Cyberabad police in the city carried out 'Operation Crackdown', during which they found several bank employees working with fraudsters and account suppliers. They allegedly opened current accounts by bypassing mandatory checks and accepted commissions in return.
"These insiders made it easy for cybercriminals to move large amounts of money. Without their support, such frauds would be much harder to carry out," said DCP Cybercrime T Sai Maohar.
The accused include employees from Indian Bank, Bank of Maharashtra, Bandhan Bank, and IndusInd Bank.
Police said the accused ignored KYC rules and failed to properly verify customer details. In some cases, field checks were done only after receiving illegal payments.
Investigators also found that the accounts handled unusually high-value transactions.
Despite clear warning signs, the bank officials did not report suspicious activity or take action.
"This is a serious misuse of their position. They broke trust and helped organise cybercrime networks," the DCP said.
In another crackdown by the Hyderabad police last week under 'Operation Octopus 2.0', a large cyber fraud network was busted, and 52 suspects were arrested across nine states, including 32 bank employees.
Those arrested included managers, clerks, and KYC staff from banks such as Bank of Baroda, Bandhan Bank, and IndusInd Bank.
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Hyderabad Cyber Crime, Cybercrime, Bank Officials