In a significant case of embezzlement, Bengaluru police have arrested four individuals, including an Axis Bank manager, who allegedly orchestrated a Rs12.5 crore fraud from Dreamplug Paytech Solutions, the parent company of the fintech unicorn CRED. The arrested suspects include Vaibhav Pithadiya, a relationship manager at Axis Bank in Rajkot, Parmar Neha Ben Vipulbhai, a banking agent from Surat, Shailesh, an insurance agent from Rajkot, and Shubham, a commission agent from Rajkot.
According to reports, Pithadiya, who is believed to be the mastermind, exploited his insider position and knowledge to carry out the fraud. The suspects are accused of stealing sensitive company data and fabricating corporate internet banking (CIB) documents to gain unauthorized access to Dreamplug’s accounts. No user data from CRED was compromised during the incident, though the fintech company declined to provide further details.
The fraud came to light on November 13 when Dreamplug’s executives detected suspicious activity in their accounts, discovering that Rs12.5 crore had been siphoned off from two Axis Bank accounts. The fraudsters reportedly forged documents such as fake board resolutions, seals, and signatures, allowing them to bypass security checks and execute 37 fraudulent transactions. They also opened multiple mule accounts to launder the stolen funds.
The police have managed to recover Rs1.83 crore of the stolen amount, and efforts to recover the remaining funds are ongoing. This incident highlights the vulnerabilities in corporate banking systems, despite stringent security measures, and underscores the need for greater vigilance within financial institutions.
CRED, founded in 2018 by Kunal Shah, initially gained fame for offering rewards to premium credit card users. However, the company has since expanded into a super app, adding various services to monetize its large user base.