In a bold move to combat surging cyber fraud, Hyderabad’s top cop VC Sajjanar penned a comprehensive letter to RBI Governor Sanjay Malhotra, advocating urgent banking reforms. The focus? Crippling organized gangs exploiting ‘mule accounts’ opened fraudulently in innocent names, which fuel billions in scams across India.
The letter, detailed in a police statement, stems from insights gained during ‘Operation Octopus,’ a major crackdown that uncovered deep-rooted failures in bank branch KYC protocols. Negligence here has turned routine account openings into gateways for crime.
Calling for accountability, Sajjanar pressed RBI to enforce rigorous oversight on branch officials and launch nationwide audits. Private banks, he noted, show widespread non-compliance, necessitating blacklisting of any convicted staff to deter complicity.
A key recommendation: Establish a tripartite working group involving regulators, bankers, and law enforcement for ongoing monitoring of illicit accounts. Advanced AI-driven tools for instant flagging of dubious transactions were also pitched as essential.
Public awareness forms the front line too. Sajjanar cautioned against lucrative investment lures on social platforms like WhatsApp and Telegram. ‘Legitimate agencies never interrogate via video or threaten ‘digital arrests’ for cash,’ he emphasized, urging vigilance to protect savings and dismantle fraud empires.
