CBI arrests Axis Bank manager for aiding cyber fraud syndicate

CBI arrested Axis Bank manager Nitesh Rai for accepting bribes to open mule accounts used by cybercriminals in digital fraud schemes.

MUMBAI: The Central Bureau of Investigation (CBI) has arrested a branch manager of Axis Bank in Mumbai for allegedly accepting bribes to facilitate the opening of mule accounts used by cybercriminals to launder proceeds of large-scale digital frauds.

CBI arrests Axis Bank manager for aiding cyber fraud syndicate

The accused, identified as Nitesh Rai, was arrested on Tuesday after investigators found that he had allegedly abused his official position to process account-opening forms for individuals linked to organised cybercrime networks. These accounts, officials said, were later used to move and disguise funds extorted through online scams, including the notorious ‘digital arrest’ frauds.

Under this scam, frauds impersonate law enforcement or government officials, convince victims they are under investigation, and virtually “detain” them through constant video monitoring, forcing them to transfer large sums of money under the pretext of clearing legal charges.

A senior CBI officer confirmed the arrest, saying, “The investigation has revealed that the arrested bank official, in collusion with cybercriminals, accepted illegal gratification and processed account-opening forms that enabled the flow and layering of cybercrime proceeds. The accounts he authorised were later found to be linked to multiple cases of ‘digital arrest’ frauds.”

The CBI has booked Rai under relevant provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita (BNS). He was produced before a designated CBI court in Mumbai, which remanded him to the agency’s custody for interrogation. Officials said he will be questioned about his alleged nexus with cyber fraudsters and other possible accomplices within the banking system.

Investigators are also probing the role of two cybercriminals who allegedly paid bribes to Rai. The duo had earlier been arrested by the CBI in connection with another digital arrest case. They are now accused of bribing a public servant under the Prevention of Corruption Act.

“Any banker, whether from a public, private, or cooperative bank, who facilitates cybercrime, directly or indirectly, will face action under the PC Act and BNS,” the official added. “The CBI remains committed to cleaning up the system and holding such individuals accountable.”

Preliminary findings suggest that cybercrime syndicates have been systematically exploiting the banking system by creating layers of mule accounts, dummy accounts opened using forged or complicit credentials, to route funds stolen from unsuspecting citizens. The agency is now working to trace the wider network and dismantle the infrastructure that enables these frauds.