Four Arrested for Embezzling ₹12.5 Crore from CRED in Major Cybercrime Case: Bengaluru Police
- ByStartupStory | December 30, 2024
In a major cybercrime breakthrough, Bengaluru police have arrested four individuals from Gujarat for allegedly embezzling ₹12.5 crore from CRED, a prominent credit card payments platform. The arrests come after an in-depth investigation into the fraudulent activities, which involved the theft of sensitive data and the forging of Corporate Internet Banking (CIB) documents.
The investigation, reported by Deccan Herald, revealed that the primary suspect, Vaibhav Pitadiya, 33, a relationship manager at Axis Bank in Gujarat, exploited his insider knowledge to mastermind the scheme. Pitadiya and his associates, leveraging vulnerabilities in CRED’s corporate account, are accused of siphoning off substantial sums of money over a series of fraudulent transactions.
How the Fraud Was Committed
According to the report, CRED’s corporate account is managed through Axis Bank’s Indiranagar branch in Bengaluru. Authorities have managed to recover ₹1.83 crore of the stolen amount. The fraud was initiated when Pitadiya identified two inactive corporate accounts associated with CRED’s nodal corporate account, which is linked to Dream Plugpay Tech Solutions Private Limited—a company processing daily transactions exceeding ₹2 crore.
Pitadiya exploited this loophole and enlisted his Instagram acquaintance, Neha Ben, to impersonate CRED’s managing director (MD). Pitadiya then forged board resolutions and supporting documents, allowing Neha to present herself as the company’s MD and request changes to the corporate account.
Neha submitted fraudulent CIB forms and forged documents at Axis Bank’s Ankleshwar branch in Gujarat, requesting the addition of a new user with altered contact details. Using the newly created user credentials, the group initiated multiple fraudulent transactions.
Pitadiya also roped in two other associates, Shailesh and Shubham, to further the scam. The duo helped create additional forged documents and opened mule accounts to channel the stolen funds.
Discovery of the Fraud
The fraud was uncovered by CRED during a routine bank account reconciliation on November 13. Discrepancies totaling ₹12.5 crore were discovered, and the company immediately alerted Axis Bank. Investigations revealed that 17 unauthorized transactions occurred between October 29 and November 11, transferring the funds to suspicious accounts.
Following a complaint filed at the East CEN Crime police station in Bengaluru, authorities traced the fraudulent activities to Axis Bank’s Ankleshwar branch. Neha, who had submitted the forged CIB forms, was arrested on December 21. During questioning, she revealed the involvement of Pitadiya and the other associates.
Ongoing Investigation
The investigation is still ongoing, with police working to recover the remaining stolen funds and identify any further accomplices involved in the scheme.
CRED has expressed its concern over the breach but is collaborating with authorities to ensure that the fraudsters are brought to justice. Authorities are also focused on securing the remaining stolen amount to mitigate further damage.
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