Hyderabad SBI Branch Fraud: Rs 175 crore scam uncovered, "mule accounts" used for transactions

State Bank of India

In a staggering Rs 175 crore fraud, Hyderabad's State Bank of India (SBI) branch manager and his accomplices have been arrested. The scam involved the use of "mule accounts" to divert substantial funds, according to the Cybersecurity Bureau, NDTV reported.

Branch manager Madhu Babu Gali, 49, and gym trainer Upadhya Sandeep Sharma, 34, have been charged in connection with the scam.

The Cybersecurity Bureau's analysis revealed multiple complaints against six SBI accounts in Shamsheer Gunj, which facilitated large, rapid transactions over two months in early 2024. Approximately 600 complaints were linked to these accounts, raising red flags about their involvement in cyber fraud.

The primary orchestrator, based in Dubai, along with five associates, manipulated poor individuals into opening accounts for cybercrimes and hawala operations, offering commissions as inducement. Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir were arrested on August 24. They played crucial roles in the scheme including handling account openings and transaction facilitation.

Shoeb, managed account documentation and kept signed cheques, with some funds being funneled to Dubai via cryptocurrency. The operation, led by Deputy SPs Hari Krishna and KVM Prasad, highlighted the need for vigilance against fraudulent schemes.

Authorities urge the public to avoid opening accounts for others or engaging in suspicious transactions. For those who have unwittingly participated in such schemes, reporting to 1930 or cybercrime.gov.in is advised.

This investigation underscores the ongoing battle against financial fraud, revealing the intricate methods employed by scammers to exploit banking systems.