Hyderabad: 23 April Posted at 3:02 PM IST
Hyderabad City Police has initiated a major step to tackle cyber fraud by engaging directly with the banking sector. On Thursday April 23, a high-level coordination meeting was held under the leadership of Commissioner V.C. Sajjanar in Hyderabad. The meeting aimed to address the misuse of bank accounts and strengthen preventive mechanisms.
The meeting was attended by senior officials from 45 public and private sector banks, along with representatives from the Reserve Bank of India. The initiative follows “Operation Octopus,” a police-led crackdown targeting organised cyber fraud networks and mule account operations.
A key highlight of the meeting was the introduction of a “twin-challenge framework.” This includes the “Safe Customer Challenge,” which aims for zero cybercrime victims linked to a bank branch, and the “Zero Mule Accounts Challenge,” focusing on eliminating fraudulent account openings. These measures are expected to be incorporated into branch-level Key Performance Indicators (KPIs).
The Commissioner emphasized that banks should shift their focus away from merely increasing account volumes. Instead, performance should be measured based on security outcomes and fraud prevention. Branches prioritizing targets over due diligence were identified as major entry points for cybercriminal activities.
Several recommendations were issued during the meeting. These included strict action against staff involved in fraudulent account openings, adoption of advanced monitoring tools like Mule Hunter, and enhanced KYC verification processes. Banks were also advised to implement real-time transaction monitoring and restrict initial transaction limits for new accounts.
The police also stressed the importance of customer awareness. Banks were directed to send regular SMS alerts, promote the national cybercrime helpline (1930), and display fraud awareness materials in branches. Customers must be educated about common scams, including investment fraud and so-called “digital arrest” scams.
Additionally, frontline bank staff were instructed to guide victims of cyber fraud promptly and empathetically. Coordination with law enforcement agencies was highlighted as a critical component in tackling cybercrime.
The briefing also revealed that many cyber fraud networks operate internationally, with links to countries like Cambodia, Vietnam, and Dubai. These networks often rely on insider support within banks to facilitate illegal transactions.
Hyderabad City Police reiterated its commitment to dismantling such networks and ensuring accountability across the banking system. Authorities confirmed that Operation Octopus will continue as an ongoing effort to combat cybercrime effectively.
Recent Big Bank Fraud Involving Bank Employees Exposed
In a recent case that has raised serious concerns over internal banking controls, an NRI customer based in Australia, identified as Paritosh Upadhyay, alleged that bank staff siphoned off nearly ₹6.5 crore from his and his family’s accounts between 2021 and 2024. According to investigators, the accused employee forged the customer’s signature and misused around 42 loose-leaf cheques to withdraw funds from fixed deposits, mutual funds, and savings, diverting the money into multiple accounts. The main accused, a relationship manager identified as Venkataramana, was arrested by Panjagutta police on April 13, 2026, and remanded to judicial custody, while a wider probe is underway to determine the role of other staff members. The case has highlighted the risks associated with misuse of loose cheques and insider access, especially in accounts managed remotely by NRIs.
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