Cases of banking fraud on the rise Hindustan Times July 07, 2014 Once again the city cyber-crime department has seen a surge in cases related to banking frauds. C(Read My Views Below)
In the past one week, the UT cyber-crime department has received five complaints in connection with banking frauds. Presently, there are about 300 such complaints pending with the UT cyber-crime department.
The city witnessed surge in banking fraud cases earlier in 2010 and 2011 also. Now, again similar cases have started coming to the fore.
With the increased use of internet, number of cyber-crime cases had also gone up in 2013 as compared to 2012 in Chandigarh. Complaints of cyber-crime cases have increased seven times this year while the number of cases registered under the IT Act have also increased by 43% in the same period, say the police records.
MODUS OPERANDI
Earlier, frauds were done through misuse of ATM cards. Now, frauds are being committed differently, say the police. These days, miscreants, saying a person is in distress and needs financial help, send emails to his or her friends and relatives.
Sometimes, victims are called by miscreants posing as bank officials.
The fraudsters demand personal bank details from the victims and later dupe them.
Besides banking frauds, cases related to ATM frauds are also on rise. In the present year, the cyber-cell department received 20 complaints where victims have been called by miscreants posing as bank officials.
RECENT CASES
Avinash, a resident of New Indira Colony, Manimajra, complained that an unidentified man withdrew Rs. 25,000 from his Indian Bank account. The police have registered a case of cheating.
Karun Saini of Sector 29 here reported to the police that an unidentified man had withdrawn Rs. 25,000 from his savings account.
In similar incident, PN Khanna, 73, has allegedly been defrauded of Rs. 28.16 lakh through a forged cheque.
CYBER-CRIME DEPT RELEASES ADVISORY
In view of rise in such incidents in Chandigarh, the police have issued an advisory to the public to beware of such strangers calling on telephone posing as a bank executive/manager. Also they have asked residents not to share their ATM cards details with anybody
Link Hindustan Times
Farida Khan and Krishnanath N Fadte had approached the court in 2013 seeking a direction to the CBI to probe into the financial transactions during the tenure of Ramchandra Mule as chairman of the bank. The petitioners had sought a probe by CBI against Mule for alleged defrauding of bank securities.
The petitioners had prayed for the constitution of a committee of financial experts from the Reserve Bank of India/ NABARD to inquire into the financial accounts of the bank from 2001 onwards and fix the civil liability and recover misappropriated money from the guilty persons.
During the hearing of the case, M Amonkar, additional public prosecutor, stated that the investigation is nearing completion and a chargesheet would be filed within a month in court. Amonkar, also submitted a status report regarding the investigation registered by the Economic Offence Cell in 2009 under Sections 406,408, 409, 418 and 420 read with Section 34 of IPC against Prakash Velip, Ramakant Phal and T V Verlekar, the then chairman, managing director and manager respectively of the Goa State Co-operative Bank Ltd.
Accepting the statement of the public prosecutor, a division bench comprising justice Ranjit More and U V Bakre observed, "The status report shows that the above crime was investigated by the Economic Offences Cell of CID. The CID recorded the statements of several witnesses. The report further shows that the CID has also taken assistance of SEBI, NABARD, Reserve Bank of India, National Stock Exchange and Various Chartered Accountants."
The court disposed of the petition following the statement made by the public prosecutor and held that petitioners grievance does not survive.
Link Times of India
The city witnessed surge in banking fraud cases earlier in 2010 and 2011 also. Now, again similar cases have started coming to the fore.
MODUS OPERANDI
Earlier, frauds were done through misuse of ATM cards. Now, frauds are being committed differently, say the police. These days, miscreants, saying a person is in distress and needs financial help, send emails to his or her friends and relatives.
Sometimes, victims are called by miscreants posing as bank officials.
The fraudsters demand personal bank details from the victims and later dupe them.
Besides banking frauds, cases related to ATM frauds are also on rise. In the present year, the cyber-cell department received 20 complaints where victims have been called by miscreants posing as bank officials.
RECENT CASES
Avinash, a resident of New Indira Colony, Manimajra, complained that an unidentified man withdrew Rs. 25,000 from his Indian Bank account. The police have registered a case of cheating.
Karun Saini of Sector 29 here reported to the police that an unidentified man had withdrawn Rs. 25,000 from his savings account.
In similar incident, PN Khanna, 73, has allegedly been defrauded of Rs. 28.16 lakh through a forged cheque.
CYBER-CRIME DEPT RELEASES ADVISORY
In view of rise in such incidents in Chandigarh, the police have issued an advisory to the public to beware of such strangers calling on telephone posing as a bank executive/manager. Also they have asked residents not to share their ATM cards details with anybody
Link Hindustan Times
Chargesheet in GSCB fraud within a month-Times of India
PANAJI: The state government recently informed the high court of Bombay at Goa that a chargesheet would be filed within one month in the case of alleged misappropriation of funds of the Goa State Coop. Bank Ltd (GSCB). The case is being investigated by the Economic Offence Cell of the Goa police.Farida Khan and Krishnanath N Fadte had approached the court in 2013 seeking a direction to the CBI to probe into the financial transactions during the tenure of Ramchandra Mule as chairman of the bank. The petitioners had sought a probe by CBI against Mule for alleged defrauding of bank securities.
The petitioners had prayed for the constitution of a committee of financial experts from the Reserve Bank of India/ NABARD to inquire into the financial accounts of the bank from 2001 onwards and fix the civil liability and recover misappropriated money from the guilty persons.
During the hearing of the case, M Amonkar, additional public prosecutor, stated that the investigation is nearing completion and a chargesheet would be filed within a month in court. Amonkar, also submitted a status report regarding the investigation registered by the Economic Offence Cell in 2009 under Sections 406,408, 409, 418 and 420 read with Section 34 of IPC against Prakash Velip, Ramakant Phal and T V Verlekar, the then chairman, managing director and manager respectively of the Goa State Co-operative Bank Ltd.
Accepting the statement of the public prosecutor, a division bench comprising justice Ranjit More and U V Bakre observed, "The status report shows that the above crime was investigated by the Economic Offences Cell of CID. The CID recorded the statements of several witnesses. The report further shows that the CID has also taken assistance of SEBI, NABARD, Reserve Bank of India, National Stock Exchange and Various Chartered Accountants."
The court disposed of the petition following the statement made by the public prosecutor and held that petitioners grievance does not survive.
Link Times of India
Culture of fraud is deep rooted in Indians. Fraud and manipulation are at the root of all successes barring a few exceptions. If a person enters into any government service by paying bribe or by using the source of some VIP or by using any unfair means as per demand of the situation, he is bound to promote fraud culture, he is bound to apply all tools to earn money and power by same brand of illegal means to gain money power, positional power and finally to become a attractive figure in the society. Similarly if a businessman or a trader has to pay bribe for starting and continuing a business he will tend to use unfair means to earn more and more wealth to perpetuate the corrupt culture.
This is why Banks incurred loss of about Rs.2000 crore in 2010, Rs.4000 crores in 2011 and Rs.2500 crores from January 2012 to June 2012 due to fraud committed by bank employees or by bank customers .It is important to mention here that these figure represents only those cases of frauds which caused loss to bank by amount more than Rs.1.00 in one cases. If the amount lost by bank in petty frauds i.e. cases involving less than one crore rupees , total loss caused by frauds to banks will be much more than banks appear to suffer loss due to bad assets.
As a matter of fact volume of fraud by number and by amount involved will go on increasing until the government stops mal practices prevalent in recruitment, promotion and transfers of services in banks and other government offices. Loss by frauds or by bad assets may be reduced to minimum not merely by strengthening control mechanism but by striking at the root of corruption wherefrom it originates.
It is also true that after the exposure of fraud of Mr. Harshad Mehta or Mr. Telgi or Mr. Raja or Mr. Kalamadi , the perception about loss has completely changes. Now a days loss of one crore or ten crore rupees by fraud or by bad lending caused to any bank or any organization is treated as very small crime and treated in a very casual manner. This is why CBI has instructed banks not to report the cases of fraud to CBI if the value involved is less than three crore rupees.
As a matter of fact government does not want to punish the evil doers but want to punish those who raise voice against the evil doers. This is why the person who report the cases of fraud with the system or who report the incident of corruption or any crime is taken to task not only by the evil doers who are exposed but by the protecting agencies like police , CBI top officials and ministers forming part of the government.
Government did not try to understand the exposure made by Team Anna and neither they thought it fit to frame strong Lokpal but they left no stone unturned to torture key members of Team Anna on flimsy grounds and puncture the movement.CBI or nay top officials who try to precipitate real criminal by their devoted and sincere investigation are transferred to remote places so that the prime evil doers are saved from further exposures. Similarly judges in courts and top officials in all departments are removed from the post if they make efforts to reveal the truth of the system.
CBI does not get time to devote on cases related to ministers and VIPs but have enough time to trap Bal Krishna , disciple of Ramdeo Guru and they got success in sending him to jail without loss of much time.CBI did not not think it fit even to penalize Passport officer in the same way as Bal Krishna was.
Government did not try to understand the exposure made by Team Anna and neither they thought it fit to frame strong Lokpal but they left no stone unturned to torture key members of Team Anna on flimsy grounds and puncture the movement.CBI or nay top officials who try to precipitate real criminal by their devoted and sincere investigation are transferred to remote places so that the prime evil doers are saved from further exposures. Similarly judges in courts and top officials in all departments are removed from the post if they make efforts to reveal the truth of the system.
CBI does not get time to devote on cases related to ministers and VIPs but have enough time to trap Bal Krishna , disciple of Ramdeo Guru and they got success in sending him to jail without loss of much time.CBI did not not think it fit even to penalize Passport officer in the same way as Bal Krishna was.
It is the tradition and it is the strategy of the top ranked officials to save bad persons and to punish good persons. This is why they do not like to act and respond on anonymous complains, anonymous emails or anonymous message even if they contain serious facts of fraud and manipulation with the system. Top officials try to investigate who are sending anonymous complains to expose the truth but never tries to look into the truth hidden in such messages. Police starts torturing the person who go for lodging FIR against any VIP because they know it is VIP who may help them in trouble or when their misdeeds are exposed by media or any crusader or any whistle blower.
This is why honest speakers do not want to speak the truth of frauds or any crime incident to police or CBI or any investigating agency. Everyone knows that the people who speak against criminal are to face the torture of the system.
Further government also makes all efforts to weaken the capacity of police, CBI , Court and all agencies which are meant to provide justice and punish evil doers .Government will never provide adequate manpower and infrastructure to these protecting agencies so that they may not pursue the cases of fraud or any crime to its logical conclusion.
This is why lacs and crores of cases against actual criminals, evil doers and fraud committers are pending in Indian courts and in topmost offices of CBI or CVC and on the contrary lacs of innocents accused of crime are languishing in jail waiting justice by court or by CBI or CVC.
It is pity that an officer who is entrusted to prevent corruption is not provided proper infrastructure whereas those who are master in fraud and crime are provided all support and all infrastructures.
It is further disheartening that in the current era of information and technology when most of the works are done online and on computers, adequate policies and tools are not developed to prevent misuse of technology. More disheartening is the fact that all departmental heads and the government in general look into academic qualifications of the person, his flattery quality and his appearance before recruiting him or and before elevating him or her to higher post attracting higher responsibilities. Character of the person has either become the last point or has become NO-POINT at all levels. This is why I usually say that the culture of fraud and manipulation is deep rooted and the culture of flattery and bribery irrigates and promotes the same.
If at all government want to reduce level of corruption prevalent in government offices, they have to fight it out on all fronts
- Ensure Quality education (Stop Giving jobs of teachers on recommendation of VIP or through bribe).
- Ensure honesty in recruitment, promotion and positing in all offices and in all departments (stop recruiting inspectors on payment of bribe).Stop promotion of flattery culture.
- Ensure timely punishment to evil doers after quickest investigation into all types of allegation and all acts of fraud including that in Human Resource Department. Punishment to evil doers should send a message to all that if they commit crime they will face the same consequences.
- Ensure all protection to those who expose the fraud, who informs the facts of crime and who tries to awaken the system of persisting irregularities.
Unfortunately, most of the key posts are manned by corrupt persons and hence they make all efforts to close the files of evil doers if willingly or unwillingly the evil works of him or her is exposed by any person or any group or by media. Who will then bell the cat?
The greatest tragedy of our country is that there are hundreds of sympathizers of a person whose evil works are exposed and who are likely to be punished. There are hundreds of well wishers who make all efforts to save such evil doers from punishment. On the contrary there are none to save an innocent person who is wrongly or under a conspiracy by a team of evil doers is falsely alleged of evils and who is punished for none of his or her fault.
There are persons in all offices who ridicule and who laugh at a person who advocate honesty and who try to ensure justice or try to punish who perpetuate reign of injustice.
After the launch of reformation era in 1991 when banks were given complete freedom to recruit and promote strictly as per their choice in the name of merit and recruit and promote fully based on their whims and fancies, Management of Banks in general forgot to verify the credentials of officers and staff joining the bank.
Before that, banks used to get credentials of a new recruit got verified by two valued persons of his locality. Now these banks ask for police report which is obtained by payment of a few pieces of five hundred rupee notes. This is why persons with doubtful integrity has entered into various banks and they managed timely and before time promotions by managing their bosses by offering what bosses liked , it may be any of WWW or all three WWW.
Due to this ,persons of bad integrity not only entered into bank but could reach upto even highest level and that is why volume of fraud and bad assets have gone unchecked and now appears to be beyond control and have crossed all prudential limits set by RBI or GOI
Before that, banks used to get credentials of a new recruit got verified by two valued persons of his locality. Now these banks ask for police report which is obtained by payment of a few pieces of five hundred rupee notes. This is why persons with doubtful integrity has entered into various banks and they managed timely and before time promotions by managing their bosses by offering what bosses liked , it may be any of WWW or all three WWW.
Due to this ,persons of bad integrity not only entered into bank but could reach upto even highest level and that is why volume of fraud and bad assets have gone unchecked and now appears to be beyond control and have crossed all prudential limits set by RBI or GOI
No comments:
Post a Comment