Haryana youth who bet on SBI for ATM fraud in police nets
Five fraudsters literally owned the State Bank of India slogan, “the banker of all Indians”, while taking advantage of its advantages and challenges to officially loot at least 5 lakh from its ATMs.
Md. Irshad, Md. Asim, Rizwan, Mustak and Asif, all from Palwal in Haryana, had accounts at banks other than SBI. They perfected an efficient technique for withdrawing money, but bank statements would still show “failed transaction.” As a result, scammers would earn 100% ROI, officially, and in one transaction day plus five days, in accordance with Reserve Bank of India policy on failed ATM transactions.
âThey initiate a real transaction. Just as the ATM dispenses the tickets, they would turn off the machine in the back. They receive the requested money, but the bank statement indicates that it is a failed transaction, âexplained the DCP of the southern zone, Gajarao Bhupal.
Then they contacted the bank officials and lodged a complaint for resolution and these were duly dealt with.
But why SBI?
Mr Bhupal said the fraudsters were betting on three things: âFirst, SBI has the largest network of ATMs. Second, most of its automated teller machines or isolated teller machines are not manned by a security guard. And, communication between different banks, in case of verification, for the resolution of failed transactions would take longer.
Over the past three months, the gang has transacted at 42 ATMs at the city’s three police stations. Their successful operations for almost two years are also taking place in other cities.
But the ATM at the Hussaini Alam branch within Charminar Police Limits, which showed “genuine fraud” transactions amounting to 53,000 between August 20 and September 9, led the way. Apparently the bank approached the police with the complaint.
Mr Bhupal said police were in contact with banking authorities for measures to prevent such future frauds.
While the five have been arrested, a team is looking for three other offenders in the network. A total of 11 ATM cards, three auto-rickshaws and one two-wheeler were seized by the police.