Did the ED Uncover a Major Banking Fraud in Muzaffarpur?
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Synopsis
The recent actions taken by the Enforcement Directorate unveil a troubling banking fraud case in Muzaffarpur, Bihar, raising questions about security in digital banking. With significant amounts of money siphoned off through sophisticated methods, this case highlights the pressing need for enhanced vigilance and protective measures in the banking sector.
Key Takeaways
- The ED is investigating a significant banking fraud case in Muzaffarpur, Bihar.
- Fraudulent withdrawals exceeding Rs 1.29 crore were reported from PNB accounts.
- The scheme involved SIM card swapping and online banking manipulation.
- Search operations have led to the seizure of incriminating evidence and frozen accounts.
- Ongoing investigations aim to identify further beneficiaries of this fraud.
New Delhi, Dec 16 (NationPress) The Enforcement Directorate (ED) from the Patna Zonal Office has executed search operations at four locations in Muzaffarpur, Bihar, related to a significant banking scam that involved illicit withdrawals from accounts at a branch of Punjab National Bank (PNB) in the area.
The operations took place on December 11 as part of a money laundering inquiry under the Prevention of Money Laundering Act (PMLA), 2002, officials disclosed on Monday.
The investigation focuses on the illegal siphoning of approximately Rs 1.29 crore from the savings accounts of two individuals at PNB’s Jawaharlal Road Branch in Muzaffarpur.
Out of the total amount, around Rs 1.07 crore was drawn from one account, while Rs 22.40 lakh was taken from another.
The ED initiated the investigation based on two FIRs filed by the Bihar Police at the Nagar Police Station in Muzaffarpur, citing various sections of the Indian Penal Code.
These offenses are categorized as scheduled offenses under the PMLA, which led the ED to launch a simultaneous inquiry into the laundering of the crime's proceeds.
According to the agency, the fraudulent activity involved a sophisticated scheme utilizing SIM card swapping and online banking manipulation.
The assailants allegedly procured duplicate SIM cards of the victims by employing forged identity documents, thereby accessing the mobile numbers tied to the bank for SMS alerts and authentication.
During this time, internet banking facilities were activated by sending messages to PNB’s toll-free number, enabling significant transfers from the victims’ accounts.
The embezzled funds were funneled through numerous transactions, with a large portion withdrawn in cash from ATMs in Kolkata and subsequently deposited into various bank accounts via cash deposit machines (CDMs).
During the search operations, the ED confiscated multiple incriminating documents and materials, as well as freezing bank balances totaling approximately Rs 83 lakh connected to the perpetrators.
Ongoing investigations aim to identify additional beneficiaries and trace the remaining proceeds of the crime.
Point of View
It is imperative to recognize the vulnerabilities within our financial systems. As the ED continues its investigation, it highlights the urgent need for enhanced security measures in digital banking to protect consumers and maintain trust in our banking institutions.
NationPress
17/12/2025
Frequently Asked Questions
What is the ED's role in this case?
The Enforcement Directorate (ED) is investigating a banking fraud case involving illegal withdrawals from Punjab National Bank accounts in Muzaffarpur under the Prevention of Money Laundering Act.
How much money was involved in the fraud?
Approximately Rs 1.29 crore was fraudulently siphoned from the savings accounts of two individuals.
What methods were used to commit the fraud?
The fraud was executed through SIM card swapping and online banking manipulation.
What actions has the ED taken so far?
The ED has conducted search operations, seized incriminating documents, and frozen bank balances amounting to Rs 83 lakh linked to the fraud.
What is the current status of the investigation?
The investigation is ongoing, with efforts to identify additional beneficiaries and trace the remaining proceeds of the crime.
