Four held for opening mule bank accounts used to transfer Rs 175cr cyber fraud proceeds in Hyderabad

Hyderabad: Telangana's Cyber Security Bureau sleuths had arrested the branch manager of State Bank of India and his aide, a private person, for helping cyber fraudsters open mule bank accounts and use them to transfer money swindled from gullible persons.

Cyber Security Bureau Headquarters in Hyderabad arrested Madhu Babu Gali, SBI Branch Manager of Shamsheergunj branch and Upadhya Sandeep Sharma for their involvement in a Rs 175 crore scam.

A case was registered under sections of 66D of the IT Act, and sections 318(4), 319(2), and 338 of the BNS Act at the Cyber Crime Police Station, Headquarters in Hyderabad, based on a Suo motto complaint.

The Branch Manager of SBI Shamsheergunj colluded with fraudsters, facilitated the opening of current bank accounts, aided in the withdrawal of funds, and orchestrated the diversion of money, all in exchange for commissions.

On August 24, personnel from the Cyber Security Bureau Headquarters in Hyderabad arrested two individuals, Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir, for their involvement in a Rs 175 crore scam.

The Cyber Security Bureau's data analysis team detected numerous complaints reported on the NCRP portal against six bank accounts in SBI, Shamsheergunj. The team focused on this issue, and upon careful verification, it was revealed that large sums of money were transacted through these accounts within a short period of two months between March and April 2024.

The account holders were suspected of being involved in large-scale cyber fraud. Approximately 600 complaints are linked to these accounts. 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 cyber crimes and hawala operations on a commission basis.

According to the cyber security police 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 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 crores.

“The public is cautioned 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,” said Telangana Cyber Security Bureau director, Shika Goel.