Bank staff under scanner as Telangana cybercrime police link fraud cases to ‘insider’ roles

As cyber frauds continue to rise across Telangana, investigators are turning their attention to the banking system, which they say is being misused to enable crimes through forged documents and mule accounts. The cybercrime wing of Cyberabad police launched a focused crackdown on bank officials suspected of aiding cybercriminals, exposing the “hidden layer” of cybercrimes.

Under ‘Operation Insider’, launched about two months ago, four bank officials, including two branch managers, have been arrested for opening current accounts without due verification and taking commissions from fraudsters in three separate cases. Those arrested include Bandhan Bank field officers Nayanala Rakesh and Kondragunta Srikanth Kumar, Bandhan Bank branch manager Nitin Kishore Mishra and Yes Bank branch manager Pika Ajay Kumar, with Prisoner in Transit (PT) warrant executed. A regional manager and another bank manager have been named in a case and are currently on the run.

Cybercrimes DCP Sai Sri said the strategy has shifted from chasing only cybercriminals to targeting the very infrastructure that fuels their operations. “We are going aggressively after bankers involved in fraud because they play a key role in facilitating the crime. Once we identify the people responsible for opening mule accounts, we go to the branch and arrest them- no questions asked,” she said. The official said that smaller private-sector banks are emerging as frequent offenders.

She pointed out the contrast between genuine customers and fraudsters. “When an ordinary citizen goes to open a bank account, officials insist on multiple documents. Why is this diligence abandoned when cybercriminals walk in? These bank employees are trained before being hired – it is their duty to stop such accounts from being opened,” said the official.

The crackdown is part of a broader effort to hold bank employees accountable and create deterrence within the system. Authorities believe that instilling fear of legal consequences is essential to prevent further collusion.

The enforcement drive is being paired with a preventive approach. Banks are being asked to speed up red-flag detection, alert police promptly, and participate in awareness sessions. The Telangana Cyber Security Bureau (TGCSB) is also pushing for the implementation of Reserve Bank of India’s MuleHunter.AI, an AI-based tool developed to trace and block mule accounts.

TGCSB Director Shikha Goel said that intervention with banks is a significant part of cybercrime strategy. “We are working closely with banks through coordination meetings and awareness programmes. Action is being taken where involvement of bank staff is found,” she said.

Hyderabad Cybercrime DCP Dara Kavitha said the commissionerate had written to the RBI, requesting regular sensitisation meetings with bank staff across the state. “The meetings have now begun, with police sharing case insights and preventive measures,” she said. Details of cases involving specific banks are also shared, along with warnings of strict action for any complicity.

In addition, banks are also being asked to join local outreach efforts and educate customers directly.

Meanwhile, the TGCSB is set to launch a six-week cyber awareness campaign with India’s largest public-sector bank. The campaign, expected to begin in the first week of December, will target students and vulnerable groups, with each week focusing on a specific Modus Operandi or type of cyber fraud.