Bank Account Fraud: Chaat Vendor's Identity Misused by Service Centre Operators

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Fraudsters Exploit Service Centre Vulnerabilities to Open Fake Bank Accounts

A recent case of cyber fraud in India has highlighted the risks associated with unsecured document handling at common service centres. Two service centre operators have been arrested for allegedly using a street vendor’s documents to open a bank account, which was then used to receive fraudulent funds.

The Scam

According to investigators, the scam began when a Mahuakhala resident received a phone call from an individual claiming to be a relative in need of urgent financial assistance after an accident. The victim transferred ₹40,000 to the provided bank account, unaware that it was a fake account opened in the name of a pani puri vendor.

Technical analysis of the transaction trail revealed that the money had been credited to an account opened in the vendor’s name at a local bank. When questioned, the vendor claimed he had recently visited a service centre to apply for an Udyam certificate and had submitted copies of his Aadhaar and other documents. He denied any knowledge of the bank account.

Investigation and Arrests

Further investigation led to the arrest of two service centre operators, Prashant and Pawan. Searches of their premises resulted in the recovery of laptops, biometric devices, mobile phones, and forged Aadhaar and PAN cards. It is believed that the equipment was used to conduct fake e-KYC processes and open bank accounts without the knowledge of the document holders.

During interrogation, the accused allegedly admitted to retaining copies of customers’ identity documents submitted for legitimate services and later using them to open bank accounts linked to different mobile numbers. These accounts were then used as mule accounts to receive proceeds of cyber fraud.

Concerns and Warnings

The case has raised concerns about the misuse of customer documents collected at facilitation centres and the need for stricter verification protocols in digital banking and e-KYC processes. Officials have warned citizens to obtain receipts for all document submissions and to periodically check their bank statements and credit reports to ensure no unauthorised accounts or SIM cards have been opened in their names.

Ongoing Investigation

The investigation is ongoing, with officials analysing bank transaction records, login logs, and device fingerprints to map the financial flow and identify additional victims. Further disclosures are expected after forensic analysis of the seized hardware.