Fraud Briefing

1. RBI imposes monetary penalties on two Maharashtra co-operative banks

RBI levied penalties on Mogaveera Co-operative Bank Ltd., Mumbai (₹20,000) and Pandharpur Urban Co-operative Bank Ltd. (₹2,00,000) following statutory inspections revealing non-compliance with RBI directions.

Entity involved: Mogaveera Co-operative Bank Ltd.; Pandharpur Urban Co-operative Bank Ltd.

2. ED FY26 asset attachments surge 171% YoY to ₹81,422 crore as raids nearly double

ED's FY2025-26 annual report shows raids under PMLA nearly doubled to 2,892, while asset attachments surged 171% year-on-year to ₹81,422 crore.

Entity involved: Enforcement Directorate

3. ED expands scope to crypto exchanges and DeFi platforms under PMLA

ED formally signalled a strategic pivot to crypto-linked financial crimes in early May 2026, expanding enforcement scope to include crypto exchanges and DeFi-linked money laundering beyond traditional bank fraud.

Entity involved: Crypto exchanges and DeFi platforms operating in India

1. ₹14.85 crore digital arrest fraud: Delhi elderly couple coerced via fake NGO accounts with international routing

High risk

Fraudsters impersonated law enforcement and placed victims under 'digital arrest' via video calls, coercing them to transfer funds into fake NGO bank accounts with international routing links that facilitated cross-border money laundering.

2. Kochi stock trading scam: two key operatives arrested in Hyderabad, international links uncovered

High risk

Victims were lured into fake stock trading platforms via social media and WhatsApp groups promising high returns. Funds were routed through layered accounts before being siphoned internationally. Kochi police coordinated a cross-state arrest operation.

3. Ahmedabad cyber cell arrests three in ₹17.9 lakh stock market fraud via unsolicited WhatsApp

Medium risk

Victim received an unsolicited WhatsApp message promising high monthly stock returns. After transferring ₹17.9 lakh across multiple bank accounts, promised returns never materialised. Police suspect a multi-state fraud network.

4. AI-generated voices and deepfake videos impersonate bank officers in Kashmir KYC fraud surge

High risk

Fraudsters pose as bank officials or government representatives using AI-generated voices and deepfake videos to trick victims into sharing OTPs or completing fake KYC verifications, enabling immediate account takeovers.

1. Seven bank officials arrested in Cyberabad: insiders bypassed KYC and tipped off fraudsters

Impact: Direct reputational and legal exposure for private sector banks whose insiders deliberately bypassed KYC norms to open mule accounts for cybercriminal networks. Officials also tipped off fraudsters when account freeze requests were initiated, enabling evasion.

2. Eight arrested in Kanpur: ₹125 crore routed through mule accounts, four bank officials implicated

Impact: Legal action against four private bank officials for enabling ₹125 crore in criminal proceeds laundered through mule accounts. Case highlights systemic KYC compliance failure and insider threat risk within Indian banking.

3. ED attaches ₹1.76 crore in mule accounts linked to digital arrest cyber fraud

Impact: Regulatory attachment action signals ED's active focus on tracing cyber fraud proceeds through the banking system. Financial institutions holding flagged mule accounts face scrutiny and potential regulatory action.