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According to the CBI, the bank manager, in collusion with cybercriminals, accepted illegal gratification and abused his official position by processing fraudulent account-opening forms.
Mumbai Banker Held by CBI
Mumbai: The Central Bureau of Investigation (CBI) has arrested a bank manager of Axis Bank in Mumbai for his alleged involvement in facilitating the opening of mule accounts used in widespread cybercrimes, such as "Digital Arrest" scams.
The accused has been identified as Nitesh Rai, Bank Manager at Axis Bank, Mumbai.
How did he commit the fraud?
The CBI stated that the arrested bank manager, abusing his position, processed the account opening forms and verification procedures. This provided the cybercriminals with the necessary banking channels to deposit, layer, and transfer the fraudulently obtained funds.
Initial investigations have revealed that these accounts were used to commit various cybercrimes, including digital arrest fraud.
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Digital Arrest Accused Already Jailed
A case has been registered against the accused under the Prevention of Corruption Act (PC Act) and the relevant Bankers' Regulations (BNS). The accused was produced before a competent court in Mumbai and remanded to CBI custody for further interrogation.
The CBI also stated that the two cybercriminals who paid the illegal bribe to the bank manager have also been named in the FIR and charged with bribing a public servant under sections of the Prevention of Corruption Act.
Both criminals have already been arrested in connection with the Digital Arrest case investigation.
Attempts to launder money through the financial system
Evidence gathered during the investigation indicates a widespread pattern of an organized cybercrime network – this network was exploiting the banking system by opening mule accounts to deposit funds stolen from innocent citizens.
Through these mule accounts, fraudulent funds were divided into small portions and transferred to numerous accounts, making it difficult to track and launder the money through the financial system.
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Strict Action Against Bankers
The CBI clarified that any bank employee, working in private and cooperative banks, found to be actively or passively involved will be punishable under the Indian Penal Code (IPC), the Prevention of Corruption Act, and relevant cyber laws.
The agency stated that it is committed to taking strict action against bankers who facilitate cybercriminals by misusing the banking system.
Further Investigation Underway
The CBI further stated that it is taking coordinated action to identify and disable such cyber-based infrastructure. This will prevent financial fraud and exploitation of innocent citizens. Investigating teams have been instructed to thoroughly examine digital trails, banking transactions, KYC documents, and communication records. More arrests are likely in this case.
