The glitch is known as the 'Timeout error glitch', the Times of India reported. The two men would use stolen bank cards in SBI ATMs.
They would go through a routine transaction on the account of the stolen card's original owner. The machine would then push out the amount for collection.
This is where the glitch comes in. The fraudsters would collect all but one note and wait for the 'time out' on the machine. This would then force the machine to note the transaction as incomplete, and not debit any amount from the account,
Therefore, the account holders woudn't be alerted to money being withdrawn and the fraud goes undetected.
The bank noted the discrepancies between the amount deposited and the cash withdrawn.
After a series of investigations where even bank employees were suspected, CCTV footage from the ATM helped reveal the crime.
The culprits would visit the ATMs frequently, and were also identified to have used stolen cards. The bank then reported it to the local authorities, who subsequently arrested them.
A case has been registered under IPC Sections 406 (criminal breach of trust) and and 420 (cheating). Investigations are still being conducted, TOI reported.
"Beware of calls, emails, and any other communication by cybercriminals posing as officials from government agencies/RBI, asking for transfer of money under the pretext of any enticing offer or alarming issue," the RBI has said.
"Do not share" account login details, personal information, copies of KYC documents, card information, PIN, password, and OTP with unidentified persons or agencies, it said.
Public should also not share such details on unverified/unauthorised websites or applications.
In case one receives any such requests, he or she is requested to get in touch with their bank/branch, the RBI said.
The central bank advised the public to report suspicious communications to law enforcement agencies.
(With PTI inputs)