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₹1.56 Crore Digital Scam: Employees Tamper Internal System, Alter Bank Details and Divert Funds from Escrow Accounts

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Ahmedabad: A significant financial fraud involving internal employees has been uncovered at a digital procurement services firm, where alleged misuse of system privileges led to the diversion of approximately ₹1.56 crore from escrow-linked transactions. The case has raised serious concerns over insider threats and cybersecurity gaps in enterprise financial systems.

How the Digital Scam Was Executed

The fraud reportedly took place at Ahmedabad-based E-Procurement Technologies Limited, which operates platforms for e-auctions and e-tendering. These systems typically store bidder security deposits in escrow accounts and release refunds after the completion of bidding processes.

According to the complaint filed by the company’s finance head, two employees allegedly exploited their administrative access rights to manipulate sensitive account information. The accused are said to have altered bidder records, reset login credentials, and tampered with Digital Signature Certificate (DSC) authentication files to bypass security checks.

By changing registered banking details within the system, the employees allegedly redirected refund payments intended for bidders into accounts under their control.

Funds Transferred to Personal Accounts

Investigators claim that around ₹16 lakh was credited to an account held by one of the accused at State Bank of India, while nearly ₹1.40 crore was transferred to a Bank of Baroda account belonging to a relative of another accused.

The total misappropriated amount is estimated at ₹1.56 crore, allegedly siphoned off in multiple transactions over a period spanning several years. The prolonged timeline reportedly helped the fraudulent activity remain undetected during routine financial reviews.

Internal Audit Uncovers Irregular Activity

The scam came to light after an internal audit and forensic examination flagged unusual system behavior. Investigators identified repeated unauthorized logins, frequent changes in bidder credentials, and inconsistencies in transaction records.

A deeper review of server logs and authentication trails ultimately pointed toward internal misuse of privileged access. Authorities are now examining whether additional individuals may have assisted or benefited from the fraud.

Growing Concern Over Insider Cyber Threats

The incident underscores the rising risk of insider-driven cyber fraud in organizations that manage large-scale digital financial transactions. Experts highlight that while external cyberattacks often receive more attention, internal access abuse remains a critical vulnerability.

Cybersecurity professionals emphasize the need for stronger safeguards such as multi-factor authentication, stricter control over digital signatures, real-time transaction monitoring, and continuous audit mechanisms to prevent similar incidents.

Investigation Continues

Authorities are continuing to trace financial flows and digital evidence to determine the full extent of the fraud. Further scrutiny is underway to identify any additional beneficiaries or systemic weaknesses that may have enabled the scam.

The case serves as a warning for digital procurement platforms and financial systems relying heavily on internal access controls, highlighting the urgent need for enhanced cybersecurity frameworks.

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Delhi Police Arrest Three in Sextortion Cyber Fraud Case

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The Cyber Cell of Delhi Police has arrested three men for allegedly running a sextortion-based cyber fraud operation that targeted a Delhi resident and extorted nearly ₹5.80 lakh through threats and blackmail.

The accused, identified as Rajesh (18), Kunal (22), and Imran (23), are residents of Faridabad, Haryana. Police said the arrests were made during an investigation into an online blackmail case registered at the Cyber Police Station of Delhi’s North-East district.

Victim Allegedly Blackmailed After Video Call

According to police, the case was registered through e-FIR No. 00126/2026 under relevant provisions of the Bharatiya Nyaya Sanhita (BNS), including sections related to cheating, extortion, and identity-related offences.

The investigation began after the complainant, identified as K.L. Tripathi, approached police alleging that he was trapped in a sextortion scam.

Police said the victim received a WhatsApp video call on May 6 from an unknown woman who allegedly claimed to be a social media acquaintance. During the conversation, the woman reportedly convinced him to remove his clothes, after which an objectionable video was allegedly recorded without his consent.

Soon afterward, the victim allegedly received calls from multiple unknown numbers. The callers claimed to represent law enforcement agencies, social media platforms, and government departments, threatening to make the video public and take legal action unless money was paid.

Under pressure and fear, the victim transferred approximately ₹5.80 lakh through multiple bank accounts, UPI transactions, and QR codes, police said.

Financial Trail Helped Investigators Identify Accused

Following the complaint, Delhi Police formed a specialized cyber investigation team to examine digital evidence and trace the movement of funds.

During the probe, investigators tracked portions of the transferred money to bank accounts allegedly linked to Rajesh and Kunal.

Rajesh was arrested on June 17 after police analysis of financial records. Further investigation and questioning reportedly helped officers identify Kunal’s role, leading to his arrest.

Police later identified Imran as another alleged participant in the operation. Investigators claimed he was involved in withdrawing the fraud proceeds through ATMs. A mobile phone and SIM card allegedly connected to the crime were recovered from him.

Possible Links to Larger Sextortion Network Under Investigation

During questioning, the accused allegedly revealed links with an organized sextortion network operating in the Mewat region of Rajasthan, according to police officials.

Authorities are now investigating whether other individuals were involved in the alleged network and whether the accused may have targeted additional victims using a similar method.

Police said no previous criminal cases have been found against the three arrested individuals so far. However, their digital activity, financial records, and possible connections to other cybercrime incidents are being examined.

Police Issue Cyber Safety Advisory

Delhi Police has advised citizens to remain cautious while accepting video calls from unknown individuals, especially those involving suspicious requests or attempts to record private conversations.

Officials urged people facing online blackmail or threats involving personal images and videos to immediately report the matter to law enforcement agencies instead of making payments to fraudsters.

The investigation is ongoing, and police are working to identify other possible members of the alleged cybercrime network.

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Kanpur Police Arrest 35 in ₹30 Crore Mule Account Crackdown

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Kanpur Commissionerate Police have arrested 35 individuals allegedly involved in operating mule bank accounts that investigators claim were used to facilitate cyber fraud worth nearly ₹30 crore. The action was carried out as part of the city’s ongoing Operation Cy-Vajra, a campaign targeting organised cybercrime and financial fraud.

According to police, the accused allegedly allowed cybercriminals to use their bank accounts in return for commissions, enabling the movement of funds generated through various online scams.

Nearly 100 Complaints Linked to the Accounts

Deputy Commissioner of Police (West) S.M. Qasim Abidi said investigators traced the accounts after examining complaints registered on the National Cyber Crime Reporting Portal (NCRP). Officials found that almost 100 cybercrime complaints were connected to the accounts under investigation, with the total financial loss estimated at approximately ₹30 crore.

During questioning, police allege that the accused admitted to handing over access to their bank accounts in exchange for financial incentives. Investigators claim they provided ATM cards, cheque books, internet banking credentials, and other banking details to individuals linked to cyber fraud operations.

Authorities believe the accounts were primarily used to transfer and conceal money generated through online investment scams, betting platforms, and gaming-related fraud.

Investigation Moves Beyond Account Holders

Police described the arrested individuals as the first layer of the alleged money-laundering chain. Investigators are now focused on identifying the organisers and operators who controlled the accounts and tracing how the money was moved after entering the banking system.

Officials are also verifying the identities of those who collected banking credentials from the account holders. Police expect additional arrests as the investigation expands to uncover the broader criminal network behind the transactions.

The Cyber Cell registered cases and conducted arrests across ten police station areas, including Shivrajpur, Armapur, Bilhaur, Panki, Sachendi, Araul, Kalyanpur, Rawatpur, Chaubepur, and Bithoor.

DCP Abidi warned that sharing bank account details or allowing unknown individuals to operate personal banking facilities is a criminal offence and can result in legal action.

Continued Crackdown on Financial Cybercrime

The latest operation is part of Kanpur Police’s intensified efforts against mule account networks throughout 2026. In recent months, investigators have uncovered several cyber fraud operations involving bank accounts allegedly used to move illicit funds generated through online scams.

Cybersecurity experts say mule accounts remain a key tool for organised cybercriminals because they help disguise the movement of illegally obtained money and complicate financial investigations. By routing funds through multiple accounts, criminal networks attempt to make it more difficult for authorities to identify the individuals responsible.

Legal experts also note that while knowingly allowing a bank account to be used for unlawful financial transactions may attract criminal liability, the arrests represent allegations at this stage. Under Indian law, all accused individuals are presumed innocent unless proven guilty in a court of law.

Police confirmed that forensic examination of banking records, digital evidence, and financial transactions is continuing as investigators work to identify additional suspects and dismantle the wider cybercrime network.

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Three Held in Kanpur Over Alleged Online Child Abuse Material Network

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Cyber Crime Police in Kanpur have arrested three individuals accused of operating an online network that allegedly distributed child sexual abuse material (CSAM) through social media platforms. Officials said the accused allegedly used social media accounts to contact potential buyers before sharing illegal content through private messaging services in exchange for money.

The investigation is ongoing as authorities work to uncover the full extent of the alleged operation, identify additional suspects, and examine whether the network has connections beyond Uttar Pradesh.

Investigation Triggered by Cyber Crime Alert

According to police, the case began after authorities received information through the National Cyber Crime Reporting Portal. The alert reportedly originated from an international child protection reporting system that detected suspicious online activity linked to the sharing of illegal child abuse content.

Cyber investigators traced the suspected individuals using digital evidence, including mobile phone records, IMEI data, and other technical intelligence gathered during the inquiry.

The three accused have been identified as Mohammad Uwais (20), Syed Sharan (18), and Aaqib Khan (22). Police allege that the suspects were involved in distributing illegal content over an extended period. During the operation, investigators seized mobile phones and other electronic devices, which have been sent for forensic examination.

Officials are also reviewing chat histories, financial transactions, and digital payment records to determine the scale of the alleged activities and identify anyone else who may have been involved.

Probe Focuses on Buyers and Potential Wider Network

Investigators have expanded the inquiry to identify individuals suspected of purchasing the illegal material. Authorities are examining bank accounts, digital wallets, and other payment channels to trace financial transactions connected to the alleged network.

Police are also assessing whether the case has any links to organized criminal groups operating in other states. Additionally, investigators are reviewing a separate recently reported case involving allegations of sexually explicit content related to minors. However, officials have clarified that no confirmed connection has been established between the two investigations, and any potential link will depend on evidence gathered during the ongoing probe.

Digital Evidence Plays Key Role

Cybersecurity professionals emphasize that the creation, possession, purchase, sale, or distribution of child sexual abuse material is a serious criminal offence under Indian law. Experts note that digital forensic analysis, financial tracking, and examination of electronic devices are essential tools for identifying everyone involved in such offences.

Authorities also warned that individuals who knowingly possess, share, or purchase such material may face legal consequences regardless of the role they played in the alleged distribution chain.

Legal Process Continues

Legal experts have highlighted that the arrests represent allegations at this stage, and criminal liability can only be determined through judicial proceedings. Under Indian law, every accused person is presumed innocent until proven guilty in a court of law.

Police stated that forensic examinations and financial investigations are continuing, and further arrests or legal action may follow if additional evidence or suspects emerge during the course of the investigation.

Authorities have urged members of the public to report suspected online child exploitation or child sexual abuse material through the National Cyber Crime Reporting Portal, the Cyber Crime Helpline (1930), or other recognized child protection reporting mechanisms.

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