Hyderabad gym trainer and SBI manager arrested in Rs 175 crore fraud

In a significant development, the Telangana Cyber Security Bureau has apprehended two additional individuals, including a bank manager, in connection with a massive Rs 175 crore fraud.

Among those arrested are Upadhya Sandeep Sharma, a gym trainer, and Madhu Babu Gali, the manager of the State Bank of India’s Shamshergunj branch. This brings the total number of arrests in this case to four.

The arrests were made under 66D of the IT Act and sections 318(4), 319(2), and 338 of the BNS Act at the Cyber Crime Police Station in Hyderabad. The case was initiated based on a suo moto complaint, according to Telangana Cyber Security Bureau Director Shikha Goel.

Gali, the branch manager, allegedly conspired with fraudsters to facilitate the opening of current bank accounts, enabling the withdrawal and diversion of funds for commissions, Goel stated.

The fraud was uncovered on August 24, with the initial arrest of two individuals, Mohammed Shoeb Tauqeer and Mahmood Bin Ahmed Bawazir, by the Cyber Security Bureau.

Through detailed data analysis, the bureau's team identified numerous complaints on the NCRP portal against six bank accounts at SBI's Shamsheergunj branch. Investigators noted substantial transactions in these accounts during March and April 2024, raising suspicions of large-scale cyber fraud, linked to around 600 complaints.

The main orchestrator, operating from Dubai, and his five associates, were found to be enticing impoverished individuals to open bank accounts for use in cybercrimes and hawala operations. Shoeb was instrumental in opening these accounts and preparing the necessary documents. Once opened, the cheques, signed by the account holders, were retained by an associate.

Funds were transferred to Dubai through cryptocurrency, and the associates withdrew and distributed the money as directed by the main fraudster. Shoeb and his associates persuaded poor individuals to open six current accounts in February 2024, promising commissions.

Significant transactions totaling approximately Rs 175 crore were recorded in these accounts during March and April.

The Cyber Security Bureau has issued a warning to the public, advising against opening bank accounts for others or engaging in suspicious transactions. They urged those who might have opened a mule account to report it immediately to 1930 or cybercrime.gov.in and to be wary of unsolicited offers. They also recommended verifying the identity and credentials of anyone requesting to open an account and regularly monitoring account activities.