Digital Scam Trail: Banks, Officials Watch as Ghost Accounts Used and Reused

As investigations by The Indian Express reveal, leading banks and their officials have dropped the ball, allowing cyber scamsters to pass crores of stolen money through ghost accounts opened by fictitious outfits. One such scam involved a 78-year-old retired IAF officer, Biren Yadav, who was coerced into transferring Rs 1.59 crore to suspected "mule accounts" in four banks, including HDFC Bank and ICICI Bank. The "mule account" in question, Jeevika Foundation, is at the heart of at least six different state police probes into cases of digital arrest and cyber fraud.

Key Takeaways:

• The Jeevika "mule account" processed 1,960 transactions on August 8, 2024, with Rs 3.72 crore credited and Rs 3.33 crore debited, in a scam day that saw a 78-year-old retired IAF officer, Biren Yadav, coerced into transferring Rs 42.5 lakh via RTGS.
• The total amount transferred by Yadav to suspected "mule accounts" in four banks, including HDFC Bank and ICICI Bank, was Rs 1.59 crore.
• The scamsters used Jeevika Foundation's bank account to carry out at least six different state police probes into cases of digital arrest and cyber fraud, with a long list of pending claims from victims, including Gurugram (Rs 38.3 lakh), Hyderabad (Rs 27.7 lakh), Manipal (Rs 21.7 lakh), Chennai (Rs 39 lakh), and Kolkata (Rs 14 lakh).
• HDFC Bank officials claimed they followed due process, including KYC norms, but failed to raise red flags despite large sums of money being transferred through the account without notice.
• The bank blames the victim, stating they did not ask further questions when the customer described the transfer as a medical emergency.
• ICICI Bank officials stated they had no pop-up alert system to detect suspicious transactions, and the matter was only discovered after the police inquiry.
• The blame game continues, with Sreenivasa Padmavathi Bank in Hyderabad pointing fingers at ICICI Bank for not alerting them to suspicious transactions totaling Rs 5.85 crore.
• HDFC Bank, ICICI Bank, and Sreenivasa Padmavathi Bank have all implemented internal security measures, including due diligence procedures and suspect account freezes, but still failed to prevent the scam.

Statistics:

• 1,960 transactions in the Jeevika "mule account" on August 8, 2024.
• Rs 3.72 crore credited and Rs 3.33 crore debited in the account on August 8, 2024.
• Rs 1.59 crore transferred by Biren Yadav to suspected "mule accounts" in four banks.
• Rs 38.3 lakh claimed by Gurugram police as part of the pending claims from victims.
• Rs 27.7 lakh claimed by Hyderabad police as part of the pending claims from victims.
• Rs 21.7 lakh claimed by Manipal police as part of the pending claims from victims.
• Rs 39 lakh claimed by Chennai police as part of the pending claims from victims.
• Rs 14 lakh claimed by Kolkata police as part of the pending claims from victims.

Sources:

• The Indian Express
• Facebook account of Jeevika Foundation
• HDFC Bank's Karol Bagh branch
• ICICI Bank's Jhajjar branch
• Sreenivasa Padmavathi Bank in Hyderabad
• Gurugram police's Special Investigation Team (SIT)
• Union Home Ministry's cyber unit
• HDFC Bank's Vigil Aunty campaign
• RBI advisories