Hyderabad Police Commissioner suggests changes in banking system to check cybercrime
Hyderabad, April 21 : In a move to combat cybercrime, Hyderabad Police Commissioner VC Sajjanar has suggested critical changes to the banking system, stating that such reforms are imperative to dismantle organised syndicates operating across the country.
In a detailed letter addressed to Reserve Bank of India Governor Sanjay Malhotra on Tuesday, the Commissioner highlighted how 'mule accounts' created in the names of innocent individuals have become the focal point of cyber fraud.
These revelations surfaced during the high-profile investigation of 'Operation Octopus' conducted by the city police, which exposed critical systemic vulnerabilities and gross negligence in the KYC verification processes at the branch level, according to a release from the Commissioner’s office.
The Commissioner urged the RBI to issue stringent directives to all commercial banks to hold branch-level officials accountable and recommended an immediate systemic audit to ensure the field-level implementation of KYC guidelines.
He expressed deep concern about instances in which bank employees themselves have colluded with cybercriminals, citing a specific case at the Nasik branch of IDFC First Bank in Maharashtra, where a KYC verifier illegally accessed a colleague’s credentials to create mule accounts for commissions.
Pointing out that such irregularities are predominantly seen in private banks, the letter emphasised the need to address these structural flaws and proposed that any official arrested or chargesheeted for aiding cybercrime should be reported to the RBI to be permanently blacklisted.
To further strengthen defences against financial crimes, the Commissioner proposed the formation of a Joint Working Group comprising representatives from the RBI, banking institutions, and the Police to regularly review the issue of mule accounts.
He also stressed the importance of banks adopting advanced technology to detect suspicious transactions in real-time.
Alongside these systemic recommendations, Sajjanar advised the public to remain vigilant against fraudulent advertisements on social media platforms such as WhatsApp and Telegram that promise high returns.
He clarified that no law enforcement agency conducts interrogations via video calls or demands money under the pretext of 'digital arrests.'
Warning citizens against the illegal practice of renting out bank accounts for commissions, he noted that account holders would be held legally responsible for any crimes committed through their accounts.
In a detailed letter addressed to Reserve Bank of India Governor Sanjay Malhotra on Tuesday, the Commissioner highlighted how 'mule accounts' created in the names of innocent individuals have become the focal point of cyber fraud.
These revelations surfaced during the high-profile investigation of 'Operation Octopus' conducted by the city police, which exposed critical systemic vulnerabilities and gross negligence in the KYC verification processes at the branch level, according to a release from the Commissioner’s office.
The Commissioner urged the RBI to issue stringent directives to all commercial banks to hold branch-level officials accountable and recommended an immediate systemic audit to ensure the field-level implementation of KYC guidelines.
He expressed deep concern about instances in which bank employees themselves have colluded with cybercriminals, citing a specific case at the Nasik branch of IDFC First Bank in Maharashtra, where a KYC verifier illegally accessed a colleague’s credentials to create mule accounts for commissions.
Pointing out that such irregularities are predominantly seen in private banks, the letter emphasised the need to address these structural flaws and proposed that any official arrested or chargesheeted for aiding cybercrime should be reported to the RBI to be permanently blacklisted.
To further strengthen defences against financial crimes, the Commissioner proposed the formation of a Joint Working Group comprising representatives from the RBI, banking institutions, and the Police to regularly review the issue of mule accounts.
He also stressed the importance of banks adopting advanced technology to detect suspicious transactions in real-time.
Alongside these systemic recommendations, Sajjanar advised the public to remain vigilant against fraudulent advertisements on social media platforms such as WhatsApp and Telegram that promise high returns.
He clarified that no law enforcement agency conducts interrogations via video calls or demands money under the pretext of 'digital arrests.'
Warning citizens against the illegal practice of renting out bank accounts for commissions, he noted that account holders would be held legally responsible for any crimes committed through their accounts.
