For security reasons, your session has been timed out. To continue, Please login.
Cheque Fraud refers to a category of criminal acts that involve making the unlawful use of cheques in order to illegally acquire or borrow funds that do not exist within the account balance or account-holder’s legal ownership.
As per the latest figures revealed by the Reserve Bank of India, bank fraud cases in India are on the rise. In the last one year, bank frauds have almost doubled. These frauds spread over a wide array of fake activities ranging from cheque fraud to acquiring bogus loans and credit cards.
There are three main types of cheque fraud:
Counterfeit – a cheque that has been created on non-bank paper to look genuine. It relates to a genuine account, but has actually been created and written by a fraudster for the purposes of committing fraud.
Forgery – a genuine cheque, however the signature is not that of the account holder. The fraudster has forged the signature by signing the cheque themselves.
Fraudulently Altered – a genuine cheque made out by the genuine customer but it has been altered by a fraudster before it has been paid in (e.g. by altering the recipient’s name on the cheque or the amount. It is no longer a genuine cheque).
Reserve Bank of India has come up with a set of guidelines for banks to ensure preventive measures to lower cheque frauds. One measure aims to employ mobile technology in the form of SMS alerts to be sent out as soon as a cheque is received for clearing. Another step to scrutinize large value cheques is to alert customers via phone calls and obtain confirmations from the drawer/payer of the cheque. RBI stated that banks should exercise extra caution while clearing cheques that are above a certain threshold value.
The South District police on Tuesday claimed to have busted a pan-India cheque fraud racket, allegedly headed by a man from the United States and run by, among others, a senior manager of Punjab National Bank (PNB).
Five persons have been arrested in connection with the case so far. According to the police, crores of rupees were fraudulently transferred from several accounts across the country using cloned cheques.
The arrested persons include Pritam Das, a senior PNB manager from south Delhi’s Khanpur branch; Gaurav Kumar Goel, Ashish Kumar Parashar, Amarjeet Singh and Sunil Sharma.
The matter came to light last month after the gang allegedly siphoned off ₹95 lakh from the PNB account of a south Delhi-based non-government organisation and transferred it to an account of the bank in Haryana’s Kurukshetra using a cloned cheque and forged signatures, said Additional Deputy Commissioner of Police –I (South) Chinmoy Biswal.
“The complainant still had the original cheque, a copy of which was used to transfer the money to M/s Lucky Timber & Iron Store. The complainant also informed that the original cheque bearing serial number 909671 had never been issued,” said Mr. Biswal.
After taking up investigations, the police first traced Amarjeet, who allegedly carried the cloned cheque to a PNB branch.
“He revealed that the cheque was given to him by one Rajiv Gupta and his associates. He agreed to transfer the money in his account after they promised him a commission of ₹30 lakh from ₹95 lakh. Amarjeet, however, didn’t know anything about Rajiv, except his car’s registration number,” added Mr. Biswal.
All for a commission
The registration number helped the police track down the owner, Gaurav.
Upon questioning, Gaurav revealed that he had contacted Amarjeet while posing as Rajiv. Gaurav said one Chirag Chaudhary of Delhi, who is now in the U.S., had roped him in to arrange for clients who took duplicate cheques for a commission.
According to the police, the bank employees first leaked all crucial account information — from the account holders’ details, signatures and stamps to blank cheque leaflets.
The accused reprinted the cheques with the help of customised ink cartridges and graphic designing software, with amount and account details of those who agreed to work on commission.
FundsTiger is an Online Lending Marketplace where you can search for and avail Fast and Easy loans from almost all the leading Banks and NBFCs. You can Apply for Loans with Best possible Rates of Interest and terms for Personal Loan, Business Loan , Home Loan and Car Refinance Loan.