In a major cybercrime case, Bengaluru police have arrested four individuals from Gujarat who allegedly embezzled ₹12.5 crore from credit card payments platform CRED, reported Deccan Herald. The suspects reportedly stole sensitive data and forged Corporate Internet Banking (CIB) documents to execute the fraud. The alleged mastermind, Vaibhav Pitadiya, 33, a relationship manager at Axis Bank in Gujarat, is accused of exploiting his insider knowledge to carry out the scheme.
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How the fraud was committed?
According to the report, CRED’s corporate account is managed through Axis Bank’s Indiranagar branch in Bengaluru and authorities have managed to recover ₹1.83 crore of the stolen amount. The accused reportedly identified vulnerabilities in CRED’s nodal corporate account, linked to Dream Plugpay Tech Solutions Private Limited, which processes daily transactions exceeding ₹2 crore. He discovered that two associated corporate accounts were inactive but knew the procedures to reactivate them.
Leveraging this loophole, Pitadiya enlisted his Instagram acquaintance, Neha Ben, to impersonate CRED’s managing director (MD). He then forged board resolutions and supporting documents to present Neha as the company’s MD, enabling her to request changes to the account.
Neha submitted fraudulent CIB forms and forged documents at Axis Bank’s Ankleshwar branch in Gujarat, requesting the addition of a new user with fresh contact details. Using the credentials linked to the newly created user, the group initiated multiple fraudulent transactions.
{{/usCountry}}Neha submitted fraudulent CIB forms and forged documents at Axis Bank’s Ankleshwar branch in Gujarat, requesting the addition of a new user with fresh contact details. Using the credentials linked to the newly created user, the group initiated multiple fraudulent transactions.
{{/usCountry}}Pitadiya then roped in two other associates, Shailesh and Shubham, to aid in the scam. The duo created additional forged documents and opened mule accounts to channel the stolen funds.
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The report further said that the fin tech company uncovered the fraud on November 13 during a routine bank account reconciliation. The company reported discrepancies totaling ₹12.5 crore and promptly alerted Axis Bank. Investigations revealed that 17 unauthorized transactions were conducted between October 29 and November 11, transferring the funds to suspicious accounts.
Based on a complaint filed at the East CEN Crime police station in Bengaluru, police traced the fraudulent activities to Axis Bank’s Ankleshwar branch. Neha, who had submitted the forged forms, was apprehended on December 21. During questioning, she disclosed the involvement of Pitadiya and others.
The investigation is ongoing, with efforts underway to recover the remaining stolen funds and identify any additional accomplices.