NEW DELHI: Credit card fraudsters racked up Rs 65 lakh by bleeding a leading private sector bank in a mindboggling operation that left both the bank and cops in a tizzy. There were two gangs working in tandem. And what has send ripples through the bank brass was the enemy within - a senior manager and a certified verification agent - all part of the well-oiled machinery that siphoned off cash. Police busted the entire network late on Wednesday and eight people have been arrested. But the bank... NEW DELHI: Credit card fraudsters racked up Rs 65 lakh by bleeding a leading private sector bank in a mindboggling operation that left both the bank and cops in a tizzy. There were two gangs working in tandem. And what has send ripples through the bank brass was the enemy within - a senior manager and a certified verification agent - all part of the well-oiled machinery that siphoned off cash. Police busted the entire network late on Wednesday and eight people have been arrested. But the bank manager, a key link in the fraud machine, is still on the run.
The gangs were initially a ragtag unit comprising a cab driver and a petty grocer, who joined hands with an insurance agent, who was skilled in forging PAN cards. They also roped in two courier company executives to deliver the credit cards, which had fake addresses. The bank manager and the verification agent gave the gang the lethal edge. The anti-fraud wing of the bank was the first to detect the racket and a FIR was lodged on October 15.
The modus operandi was simple. The gangs would churn out fake documents, give fake names and addresses and apply for credit cards. The bank's certified verification officer, who was part of the racket, would give the authenticity stamp on the documents. This would then be passed by the bank manager. The courier company executives in charge of dispatching the cards would deliver the consignment to the fraudsters. Then they would swipe the cards in an EDC machine and money would be automatically transferred to their accounts.
Ashok Chand, DCP (crime) said, "We found that Ashok Kumar, a verification officer employed with Savvy Management Private Ltd carried out verifications on behalf of the bank. Two field executives of a leading courier agency were part of two separate modules. Ashok got a cut of Rs 2000 for each of the 23 credit cards issued. And the two courier boys delivered the cards at the residence of the house as all addresses were forged." Police said they have identified the bank officer, who got a healthy cut on all these deals. The kingpin has been identified as Sunder Kumar, a former insurance agent, who floated a computer software company, Comviva Technologies, in Rohini.
An employee of Savvy Management Private Ltd that conducted verification for the bank played a crucial role. "Since the identity of the card holder and his address were fictitious, the fraudsters also involved two delivery boys of a leading courier company that delivered the credit cards in this racket," Chand said.
The second module was not as elaborate in their operation. This gang was led by Jatinder Gulati, a grocer in Sadar Bazar. His aides, a property dealer and former loan claims inspector acted as his conduits. "They too got the credit cards using the same modus operandi but depended on Chandni Chowk traders to use the EDC machine. The traders would swipe the cards, keep a 6 per cent cut and pass on the remaining money to the gang," a police officer said.
After obtaining the credit cards, the fraudsters got in touch with merchants who for getting 4 to 6 per cent of the transacted amount as commission swiped these credit cards in their EDC machines. "The transacted amount then went to the bank account of the merchants. Since there was no actual sale of goods by the merchants, the merchants gave the fraudsters 94 to 96 per cent of the transacted amount in cash to the fraudsters and kept 4 to 6 per cent to themselves," Chand said.
Read more: http://articles.timesofindia.indiatimes.com/2011-10-21/delhi/30305742_1_credit-cards-edc-machine-card-holder

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