Rs 175-Crore Fraud In Hyderabad: SBI Branch Manager, 3 Others Arrested For Hawala Ops, Cybercrime Links

Telangana Cyber Security Bureau Chief Shikha Goel stated that SBI branch manager with fraudsters helped to open current accounts, facilitate withdrawals and divert money in exchange for commissions.

Earlier, the Bureau’s data analysis team detected numerous complaints against six accounts at the SBI Shamsheergunj branch

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The Telangana Cyber Security Bureau arrested two more individuals, including a bank manager, on Wednesday in connection with a Rs 175 crore fraud case. The accused, Upadhya Sandeep Sharma, a gym trainer, and Madhu Babu Gali, the manager of the State Bank of India’s Shamsheergunj branch, have been detained for their alleged involvement, bringing the total number of arrests in the case to four. Earlier, two individuals, Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir, were arrested on August 24 for their involvement in the scam, as per a report on NDTV.

Telangana Cyber Security Bureau Chief Shikha Goel stated that the SBI branch manager colluded with fraudsters, helping to open current accounts, facilitate fund withdrawals, and divert money in exchange for commissions.

The Bureau’s data analysis team detected numerous complaints against six accounts at the SBI Shamsheergunj branch, reported on the National Cyber Crime Reporting Portal (NCRP), reported IANS. Investigations revealed significant transactions in these accounts totaling approximately Rs 175 crore during March and April 2024, suggesting large-scale cyber fraud linked to the accounts, according to a report on IANS.

A case has been registered against them under Section 660 of the IT Act and Sections 318(4), 319(2), and 338 of the Bharatiya Nyaya Sanhita (BNS) at the Cyber Crime Police Station in Hyderabad, based on a suo moto complaint.

How Did Rs 175 Crore Fraud Transpire? 

According to the Bureau, the main fraudster, based in Dubai, and his five associates lured impoverished individuals into opening bank accounts for use in cybercrimes and hawala operations. Shoeb played a crucial role in opening these accounts and handling the necessary documentation. After setting up the accounts, the fraudsters obtained the account holders' signatures on cheques, which were kept in the custody of one of the associates for unauthorized transactions.

Large sums of money were subsequently withdrawn and transferred to Dubai through cryptocurrency, following the directives of the main fraudster, who then distributed the funds through various agents, as per the report.

Shoeb and other associates convinced several individuals to open six current accounts at the SBI Shamsheergunj branch in February 2024, promising commissions. By March and April, substantial transactions totaling Rs 175 crore had taken place in these accounts.

The Cyber Security Bureau has issued a public advisory, warning against opening bank accounts for others or participating in suspicious transactions. If someone has already opened a "mule" account, they are urged to report it immediately by contacting 1930 or visiting the Cyber Crime portal at cybercrime.gov.in. The Bureau emphasized the importance of verifying the identity and credentials of anyone requesting to use your account and regularly monitoring account activities.