4 Axis Bank officials among 8 held for Rs 97-cr investment fraud in Bengaluru

Bengaluru: The Bengaluru cybercrime police cracked a case of online fraud involving investment and trading and arrested eight people, including four officials from Axis Bank.

The police arrested the bank’s Nagarabhavi branch employees — Kishore Sahu, branch manager; Manohar, sales manager; Karthik and Rakesh, both sales executives — for helping others open mule bank accounts.

According to the police, the bank officials were hand in glove with other suspects — Lakshmikant, Raghu Raj, Kengegowda and Mala, all from Chikkamagaluru’s Kadur — helping them open mule accounts without proper documents and flouting prescribed rules to open bank accounts.

The suspects opened six mule accounts in the same bank, which were used by fraudsters for executing 254 cybercrime cases across the country. A whopping Rs 97 crore was siphoned off by cybercriminals using the six accounts, according to the National Cybercrime Reporting Portal.

The arrests followed a complaint by a Yelahanka resident at the cybercrime police station in the commissioner’s office after losing Rs 1.5 crore to cyber fraudsters in investment fraud. 

The victim, Raju (name changed), was added to a WhatsApp group offering trading tips.

He was enticed by attractive returns on investment offers posted on the group by the fraudsters. Raju was convinced by the messages and contacted other group members, asking their opinion, who further reinforced his belief. The other participants in the group were also members of the gang. 

Raju was directed to download an APK of the trading platform when he approached the group admins expressing his interest in trading. Between March and June, he transferred Rs 1.5 crore to bank accounts given by the fraudsters towards the “investment' amount. 

“Raju downloaded the app and opened a trading account. Every time Raju sent money to bank accounts sent by fraudsters, his trading account reflected the credited amount. However, the numbers were simulated,” an investigator in the case told DH.

The fraudsters succeeded in winning Raju’s confidence by simulating numbers on the app, which indicated he was gaining large profits on his investments. He felt something was amiss when he attempted to withdraw money from the account. 

Raju filed a police complaint after the fraudsters demanded Rs 75 lakh towards “server management” for withdrawing his money.

The police traced the money transferred by Raju, which led them to two current accounts opened at an Axis Bank in Nagarabhavi. The police learnt the accounts were created without proper documentation and learnt about the involvement of bank officials in the scam. 

According to the police, sales manager Manohar knew the suspects from Chikkamagaluru and assisted them in opening accounts. He received money from them and distributed it among his colleagues. 

Chikkamagaluru link

Mule account holders, who are from Chikkamagaluru, worked on the kingpin’s directions. The lynchpin in the case is also from Chikkamagaluru and has fled the country. He frequented Karnataka in the past several months.

Manohar sales manager