Bank Fraud: How To Keep Tabs On Your Bank Account And Stay Vigilant Against Insider Frauds

In a recent case that called for serious questions about customer account security, an ICICI Bank relationship manager in Rajasthan allegedly siphoned off more than Rs 4.58 crore from over 110 customer accounts. The accused person, Sakshi Gupta, was working in the bank's DCM branch in Kota.

Gupta had transferred money from dormant and operational accounts into other accounts and used the funds to invest in the stock market. 

She eventually lost the amount. A case was filed against her for cheating and criminal breach of trust. She was eventually arrested and was sent to judicial custody.

How Did The Fraud Go Unnoticed

Gupta is accused of abusing her role to access account information for her own use.

Most of the customers who lost money were not aware of the missing funds until the scam was discovered during an in-house audit. She is believed to have evaded customer alerts by altering contact information as well as taking advantage of dormant accounts.

Such scams raise questions about banks' internal controls and how easy it was for one employee to withdraw large sums without them being detected immediately.

How Customers Can Secure Their Accounts

Although this was an insider case, there are some simple steps that all account holders can take to minimise risks:

• Verify Account Statements Regularly: Don't wait for the month-end. Monitoring your account and SMS/email notifications regularly can prompt you to recognise unusual activity early.

• Never Provide Sensitive Information: Never share your OTPs, debit card PIN numbers, or login details with anyone, including your bank representatives. It is the bank policy not to demand such information.

• Set Transaction Alerts: Most banks provide transaction alerts. Ensure that these are switched on even for low values.

• Watch for Dormant Accounts: Don't keep money idle in a bank account. Review their status periodically or close the account rid if not required.

• Report Immediately: According to Reserve Bank of India (RBI) rules, if you report unauthorised transactions within three days, your loss can be retrieved.

What Banks Are Doing To Combat Fraud

All banks have systems to identify suspicious activity, for instance, large or recurring transfers. Insider frauds, however, are more difficult to track unless an audit is performed or if a customer complains.

After the incident, ICICI Bank has reported that it is assisting the police inquiry and taking in-house measures. Most banks are currently analysing employee access to sensitive customer information and making approval processes for account changes stricter.

What To Do If You Are A Victim

If you find any unauthorised transaction:

1. Immediately notify your bank's customer care and freeze cards or UPI access.

2. Lodge a written complaint at the bank and retain a copy for future reference.

3. Lodge a cybercrime complaint at www.cybercrime.gov.in or at the local police station.

4. If you don't receive an adequate solution within 30 days, contact the RBI's Banking Ombudsman.

A Wake-Up Call For Customers

The ICICI Bank incident is a reminder that fraud doesn't always turn up in the shape of phishing emails or spoofed links. 

Sometimes, it can turn out to be a person inside the bank who will break the trust. Though systems and audits are getting better, it's also the customers' responsibility to be careful. Watching out for your money is the surest way to keep it secure.