Fraud Briefing

1. RBI penalises two Maharashtra co-operative banks for KYC and deposit rate non-compliance

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

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

2. ED FY26: record 2,892 PMLA raids and ₹81,422 crore in attachments in strategic shift to asset seizure

ED registered a record 2,892 raids under PMLA during FY2025-26, with attached assets hitting ₹81,422 crore, even as formal arrests declined 27%. The strategy shift prioritises asset seizure over custodial action.

Entity involved: Enforcement Directorate

3. ED Director announces crypto as next primary enforcement domain on 70th anniversary

On May 1, ED Director Rahul Navin announced a strategic focus on digital asset fraud, cyber-enabled terror financing, and cross-border narcotics transactions, flagging crypto as the agency's next primary enforcement domain.

Entity involved: Directorate of Enforcement (GoI)

1. Operation Octopus 2.0: 56 arrested including 32 bank insiders enabling cyber fraud across 9 states

High risk

Organised rings recruited bank managers, KYC approvers, relationship managers, and field officers to open mule accounts and route fraud proceeds. Fraud types included trading scams, investment fraud, FedEx impersonation, digital arrest, and credit card fraud. Accused sourced from Maharashtra, Delhi, Karnataka, West Bengal, Rajasthan, Bihar, and four other states.

2. Former Fino Bank employee exploits insider KYC knowledge to run ₹40 crore fraud racket

High risk

Rajbir Singh Yadav, a former Fino Bank employee, leveraged insider KYC knowledge to open multiple accounts using fake documentation, allegedly with active collusion from other bank insiders. Five primary accounts frozen; total suspicious transactions traced at over ₹40 crore. ₹2.11 crore frozen.

3. India ranked 5th globally for spam calls; financial services scams account for 18% of total spam

Medium risk

Truecaller's Global Insights Report (May 5, 2026) shows scam calls constitute 12% of all spam in India. Financial services spam - loan offers, bank impersonation, KYC update requests - represents 18% of total unwanted calls, a primary vector for digital lending fraud and vishing attacks.

1. Kochi ₹24.7 crore trading scam: two arrested in Hyderabad, international money trail uncovered

Impact: Financial loss of ₹24.7 crore; cross-border money trails under investigation. Organised international fraud network structure revealed by probe.

2. Operation Octopus 2.0: ₹9.13 crore losses across 77 cases; ₹69.99 lakh refunded to 33 victims

Impact: Hyderabad Cyber Crime Police reported ₹9.13 crore in combined victim losses across 77 April cases. ₹69.99 lakh successfully recovered and refunded to 33 victims, highlighting the large gap between losses and recovery. Reputational damage to implicated bank branches.

3. KYC fraud Kanpur: key accused absconding, ₹2.11 crore frozen, ₹40 crore suspicious transactions traced

Impact: Investigation active; primary accused Rajbir Singh Yadav remains at large. Five accounts frozen. Broader institutional risk from insider-facilitated fraud patterns at Fino Bank branches flagged for review.