Cops probe 119 cases after court orders action in 2021 fraud

The Ludhiana police have intensified action against a gang involved in a large-scale fraud through technical tampering of ATM machines during 2021. Unidentified suspects targeted approximately 119 ATMs installed in various areas of the city, defrauding victims of lakhs of rupees.

As per the police, miscreants had defrauded the State Bank of India (SBI) by stealing over Rs 1 crore from the 119 ATMs.

Following the orders from the Sessions Court in a high-tech fraud, the Cyber Crime police registered a case against unidentified persons and accelerated their investigation.

According to the application submitted by the complainant in the

court, Avinash Kumar, manager of the treasury branch of the State Bank of India, the fraudulent scheme was executed throughout 2021.

The clever fraudsters, showing a complete disregard for Ludhiana’s law enforcement, targeted 119 ATMs one after another. By technically manipulating the machines, they carried out fraudulent transactions that resulted in massive financial losses for both banks and account holders to the tune of Rs 1 crore.

While the matter remained unresolved at that time, the police have now registered the FIR and reopened the probe following the intervention of the Ludhiana Sessions Court and orders from the Judge.

Bank officials believe it could be the work of a major interstate gang that siphoned off money by exploiting technical vulnerabilities in the ATMs. Following the court’s mandate, the police are now scrutinising old records and CCTV footage to unmask unidentified faces behind the crime.

The fact that 119 ATMs were targeted simultaneously has raised serious questions regarding security arrangements. At present, the police have registered the case and initiated raids to track down the suspects.

Genuine account holders also under scanner

The miscreants suspected to have exploited technical vulnerabilities of ATMs. Genuine account holders can come also under scanner. When bank realised that money was stolen from the 119 ATMs, over Rs 1 crore was already stolen. The bank raised the alarm and lodged a police complaint.

Every angle being probed, say police

ADCP Vaibhav Sehgal said the police were not ruling out any angle. Money could have been stolen through the ‘Transaction Reversal Fraud’ (TRF), also known as a ‘Partial Cash Withdrawal’ scam, in which criminals manipulate physical and digital synchronisation of the ATM to illicitly obtain cash while ensuring the bank’s core system registers the transaction as a ‘failure’.

He said even mule accounts could have been used to deposit cyber fraud money and then fraudsters withdraw the same. The police were

not ruling out any angle and the investigation will unearth the scam.

How transaction reversal fraud works

Suppose a perpetrator initiates Rs 10,000 withdrawal. As the shutter opens and currency notes come out, miscreant collects around Rs 9,000 but deliberately leaves a few notes in the dispenser slot.

The ATM detects that the dispenser is not empty and assumes that the user has not collected the money. Hence, the bank’s server will receive a failed transaction message and entry of Rs 10,000 will be reversed back to the fraudster’s account. Hence, despite withdrawing Rs 9,000, user’s bank balance remains untouched and cause financial loss to the bank.