Daily Post 2995
ONE CYBER SCAM WITH 5000 MULE INDIAN BANK ACCOUNTS
In the world of hacks, breaches, and cyber fraud, with every big case, the feeling is that it cannot get bigger. But lo and behold in a very short time, the preceding case starts looking puny. Think of a case of where more than 5000 mule accounts were used for siphoning off funds. The last known figure of the number of mule accounts in any preceding case would be much lower. The case is of Rs. 640 crore crypto fraud case. ED has already arrested two CAs and one crypto trader in this case. The astronomical amount was siphoned off through around 5000 mule Indian bank accounts and uploaded on PYYPL, a United Arab Emirates-based payment platform.
The case is a comprehensive cyber fraud case where this huge amount of money has been generated through betting, gambling, part-time jobs and phishing scams. The mule accounts used for this purpose have been uploaded on “PYYPL.” This case clearly manifests what ails the Indian banking system leading to the mule account opening and operating it with ease. It seems the cyber crooks know the banking system better than the practicing bankers, or are the bankers totally unconcerned. They are convinced of the fact that whatever come may, the banking business is invincible. The case started with two FIRs registered by the CBI alleging cyber fraud.
None of the banks have ever complained of mule accounts about illegal routing of funds, while the country is discussing this pandemic from rooftops. The CAs arrested are Ajay Yadav and Vipin Yadav, the third accused being Jitendra Kaswan. The arrests were made following searches at 13 locations. Documents, cheque books, ATM cards, PAN cards, digital signatures, trust wallet secret phrases besides cash & crypto currency were seized. What is extremely intriguing and worrisome is that there existed a nexus of certain chartered accountants, company secretaries, and cryptocurrency traders in laundering proceeds of crime.
It is believed that 15,588 card transactions were made. This money laundering racket was assisted by handlers sitting abroad through closely held chat groups. The groups were operational repositories of instructions regarding opening of mule accounts, cash circulation, and purchase of cryptocurrency. More than 2000 documents seized detailing debit / credit transactions and purchase of cryptocurrency are being analysed. Crime has moved to a totally different level, whereas the banking security and business logic behind core banking remains blatantly feudal. How long will they take to come up with some worthwhile response? Or we have lost the battle. Investigation, however meticulous, is not a root cause solution.
ITS HIGH TIME FOR THE BANKS TO PICK UP THE GAUNTLET FOR THEIR CUSTOMERS.
Sanjay Sahay