SBI branch manager from Hyderabad arrested in Rs 175 crore online fraud

SBI Branch Manager arrested: A State Bank of India manager in Hyderabad has been arrested along with her associates in a fraud case worth Rs 175 crore. The accused, Madhu Babu Gali, aged 49, along with a gym trainer, Upadhya Sandeep Sharma, aged 34, were taken into custody after a detailed investigation by the Cybersecurity Bureau Headquarters in Hyderabad, according to media reports.

The fraud involved the opening of multiple current accounts at the SBI branch, facilitating the illegal withdrawal and diversion of funds, all in exchange for hefty commissions. The Cybersecurity Bureau’s data analysis team had flagged numerous complaints related to six specific bank accounts at the Shamsheer Gunj branch, prompting an in-depth investigation.

Massive transactions, 600 complaints

The accounts in question saw massive transactions amounting to Rs 175 crore within a span of just two months, March and April 2024. These transactions were linked to large-scale cyber fraud, with around 600 complaints filed against the associated accounts.

The main perpetrator of the scam, believed to be operating out of Dubai, collaborated with five associates to lure financially vulnerable individuals into opening bank accounts. These accounts were then used for cybercrime activities and hawala operations, with a portion of the funds reportedly sent to Dubai through cryptocurrency.

Key arrests in scam

On August 24, the Cybersecurity Bureau arrested two key individuals, Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir, who were playing important role in the operation. Shoeb, in particular, was responsible for opening the fraudulent bank accounts and handling related documentation. 

Signatures of the account holders were secured on cheques, which were then kept under the control of one of the associates for misuse.

Following the mastermind's directives, Shoeb and his associates convinced poor individuals to open six current accounts at the SBI Shamsheer Gunj branch in February 2024, promising them commissions in return. These accounts were later used for substantial transactions, culminating in the Rs 175 crore fraud.

Mule account caution issued

The Hyderabad police have issued a warning to the public against opening bank accounts on behalf of others or engaging in suspicious transactions. 

They urged anyone who may have inadvertently opened a "mule account" to report it immediately to 1930 or via cybercrime.gov.in.

This operation was executed under the leadership of Deputy SPs Hari Krishna and KVM Prasad, with active participation from SP Devender Singh and officers including Inspectors D Srinu, Mahender, and constables Venkat Goud, Syed Taher, Krishna Swamy, and Shanker.