Major ICICI Bank Fraud By Relationship Manager
An ICICI Bank relationship manager in Mumbai allegedly stole ₹4.58 crore from customer accounts. The fraud involved breaking fixed deposits and creating fake overdrafts and personal loans without customer consent.
How the Fraud Was Carried Out
- The manager used customer details to create unauthorised overdrafts and loans.
- Funds were transferred to third-party accounts or used to fund personal expenses.
- Multiple FD-breaking requests were faked, sometimes over ₹1 crore per customer.
- The manager abused access to sensitive KYC documents and account systems.
Customer Impact
- Several customers discovered unauthorized loan or overdraft charges on their statements.
- Lost amounts ranged from lakhs to crores, depending on affected customers.
- Many victims raised alarms after seeing unusual debits and charges.
Bank and Authorities’ Response
- ICICI Bank froze all related transactions and blocked further unauthorised transfers.
- The bank is working with Mumbai Police and banking regulators to recover the amounts.
- Disciplinary action was taken, and the manager has been suspended pending investigation.
Lessons and Follow-Up
- This case highlights the need for stronger internal controls and better checks on relationship managers.
- Customers are urged to regularly monitor account activity and report suspected fraud.
- Banking regulators are expected to issue guidance to prevent similar issues in the future.
The ₹4.58 crore fraud shows how insider access can be abused. It serves as a warning for banks and customers to strengthen oversight and vigilance.