Shimla Bank Scam: Bank of Baroda Officer Accused of Rs.3.70 Crore Fraud - How It Was Exposed
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In a major banking fraud, a senior manager at Bank of Baroda ’s Shimla branch has been found involved in the unauthorized transfer and withdrawal of ₹3.70 crore. The accused allegedly diverted funds from an institutional account into personal and third-party accounts, later withdrawing the money in cash or routing it through various transactions to mask the trail. The fraud was discovered between August 22 and 27, when suspicious activity was detected during routine checks. A formal police complaint was lodged by the Deputy Regional Manager, prompting immediate freezing of suspect accounts and a deeper investigation.
How the Scam Was Executed
According to preliminary findings, the officer used his position and access to bank systems to transfer the entire sum to a woman’s account over two separate days. From there, the amount was broken up and moved through several smaller accounts to avoid detection, eventually being withdrawn in cash. This method not only concealed the trail but also allowed the accused to liquidate a majority of the funds swiftly. At the time of freezing, only ₹90.95 lakh remained in one of the flagged accounts. The police, in collaboration with the bank’s audit wing, are now tracking the fund flow and involved parties.
Confession and Criminal Charges Filed
On September 7, the accused official reportedly submitted a written confession, admitting to embezzling the funds for personal gain in collaboration with unknown individuals. The police have registered a case under Section 316(5) of the Indian Penal Code, and further investigation is ongoing. Authorities have confirmed that they are actively identifying the other people involved in the fraudulent activity. This admission has accelerated the legal process, and more arrests or revelations are expected in the coming days.
Investigation Involving Cyber Cell and Audit Teams
Given the complexity and scale of the fraud, both the bank's internal audit department and cybercrime specialists have been brought in to assist with the investigation. These teams are examining digital footprints, transaction logs, and system access records to establish a full timeline and map out the entire network of transactions. Their insights will also help in identifying loopholes in the system that allowed such a breach to occur. This coordinated effort is crucial to recovering the lost funds and preventing future instances of internal fraud.
Customers Alarmed, Bank Assures Protection
The incident has understandably caused concern among Bank of Baroda customers in Shimla, with questions being raised about the safety of deposits and the reliability of internal controls. However, the bank management has moved swiftly to reassure the public, stating that customer interests and account security remain top priorities. Officials emphasized that this was an isolated incident involving internal misconduct and that corrective measures, both disciplinary and technical, are being taken. Customers have been advised to remain calm as investigations proceed and accountability is ensured.
How the Scam Was Executed
According to preliminary findings, the officer used his position and access to bank systems to transfer the entire sum to a woman’s account over two separate days. From there, the amount was broken up and moved through several smaller accounts to avoid detection, eventually being withdrawn in cash. This method not only concealed the trail but also allowed the accused to liquidate a majority of the funds swiftly. At the time of freezing, only ₹90.95 lakh remained in one of the flagged accounts. The police, in collaboration with the bank’s audit wing, are now tracking the fund flow and involved parties. Confession and Criminal Charges Filed
On September 7, the accused official reportedly submitted a written confession, admitting to embezzling the funds for personal gain in collaboration with unknown individuals. The police have registered a case under Section 316(5) of the Indian Penal Code, and further investigation is ongoing. Authorities have confirmed that they are actively identifying the other people involved in the fraudulent activity. This admission has accelerated the legal process, and more arrests or revelations are expected in the coming days.Investigation Involving Cyber Cell and Audit Teams
Given the complexity and scale of the fraud, both the bank's internal audit department and cybercrime specialists have been brought in to assist with the investigation. These teams are examining digital footprints, transaction logs, and system access records to establish a full timeline and map out the entire network of transactions. Their insights will also help in identifying loopholes in the system that allowed such a breach to occur. This coordinated effort is crucial to recovering the lost funds and preventing future instances of internal fraud. Customers Alarmed, Bank Assures Protection
The incident has understandably caused concern among Bank of Baroda customers in Shimla, with questions being raised about the safety of deposits and the reliability of internal controls. However, the bank management has moved swiftly to reassure the public, stating that customer interests and account security remain top priorities. Officials emphasized that this was an isolated incident involving internal misconduct and that corrective measures, both disciplinary and technical, are being taken. Customers have been advised to remain calm as investigations proceed and accountability is ensured. Next Story