AHMEDABAD: The Cyber Centre of Excellence of Gujarat Police has busted a high-tech interstate fraud racket that allegedly targeted more than 15 banks across the country and siphoned off nearly Rs 210 crore through a sophisticated digital scam.
The gang allegedly exploited banking software loopholes, siphoned crores from over 15 banks, and looted Rs 7 crore from Bhavnagar District Co-operative Bank in a single night.
Cyber Centre of Excellence SP Dr Rajdeepsinh Zala said organised gangs often exploit technical flaws in banking systems to execute large-scale frauds. “A total of seven accused have been arrested so far. The search for the mastermind is still underway, and more shocking revelations may emerge in the coming days,” he said.
The operation has exposed a Vadodara-based gang that police say hacked the banking system of Bhavnagar District Co-operative Bank and stole over Rs 7 crore in just one night during Holi festival.
Police said the gang’s operations were spread across multiple states, including Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Tamil Nadu, Uttar Pradesh and Punjab.
The probe revealed that the accused were not one-time offenders. Investigators have linked the syndicate to at least 273 separate cybercrime cases, with the fraud amount swelling to an estimated Rs 210 crore.
Police said the gang’s main weapon was a loophole inside the CBS (Core Banking Services) software used by banks. Exploiting technical weaknesses, the accused allegedly manipulated systems from behind screens and moved crores without triggering immediate suspicion.
Investigators said the gang first identified old and dormant bank accounts, then changed the registered mobile numbers linked to those accounts, effectively hijacking control without the original account holders knowing.
Once access was secured, the accused allegedly generated a virtual credit of Rs 7.34 crore inside the banking system. From there, the money trail was rapidly split and routed into 135 separate bank accounts.
Police said these accounts had been “rented” from ordinary people who were lured with financial incentives, allowing the gang to layer transactions and make the stolen money harder to trace.
The operation was carried out under the guidance of Gujarat State Police Chief (CID Crime and Railways) Dr K Lakshmi Narayan Rao and Cyber Centre of Excellence Inspector General Bipin Ahir.
During coordinated raids and arrests, police nabbed gang members from different states and seized nine passbooks, 39 debit cards, 12 chequebooks and four mobile phones believed to be linked to the racket.
In a swift financial recovery move, investigators also froze Rs 2.04 crore suspected to be part of the fraud proceeds, preventing further misuse of the stolen funds.