Exclusive | 'Help' to friend turns into Rs 7-crore cybercrime nightmare in Bengaluru

Shared bank account information was used to launder money.

A 19-year-old engineering student was shocked to learn that his friend had misused his bank account, which cybercriminals later used to launder Rs 7 crore in just two days. 

Sangam R (name changed), a student at a reputable college in northern Bengaluru, had lent his bank account to his friend E Ayush, sharing his passbook, ATM card, netbanking credentials and even the SIM used to receive transaction alerts. 

In November, Ayush told Sangam his bank account was blocked due to insufficient balance and asked to use his account for a few days. 

Sangam had known Ayush for a year, and the two had become close. Sangam agreed and mailed over his Karnataka Grameena Bank passbook, ATM card, netbanking credentials and an Airtel SIM card linked to the account.

Later, bank representatives showed up at Sangam’s address to inform that his account was being blocked due to transactions totaling Rs 7 crore in two days, which were proceeds from cybercrimes. 

“The transactions occurred in just two days, so bank officials tracked him down for verification. They had been tracking a company, likely a shell corporation, that was used to launder the proceeds, and wanted to confirm since bank officials are also being investigated in cybercrimes now,” a senior cybercrime investigator told DH. 

Since the account was in the teen’s name, it triggered a physical verification. Also, banks receive alerts of suspicious transactions from the government.

The phone number linked with the bank was also changed later, the officer explained.

Sangam approached the North Cybercrime Police, which registered an FIR on February 20 and arrested a 23-year-old suspect the next day. Ayush, however, is yet to be traced. 

“We arrested the person on suspicion of operating the mule account to launder the proceeds of crime. He is the first suspect held so far. We suspect that Ayush sold/lent the victim’s bank account on Telegram to cybercriminals located abroad, who later recruited the arrested suspect to operate the account using a work-from-home ruse. This is a well-oiled network spread across the state, and efforts led by Director General of Police (Cyber Command), Pronab Mohanty, to dismantle it are underway. This case is a part of that ongoing effort,” the officer quoted previously said. 

Based on preliminary investigations, police believe Sangam was unaware that his account was being misused, an officer involved in the investigation said.