₹80 Crore Fraud at Standard Chartered Bank: Could Your Account Be Affected?

A major fraud has surfaced at a Standard Chartered Bank branch in Bangalore, involving the bank’s wealthy clients. The issue first came to light last month when a customer reported missing funds, and subsequent investigations indicate that the fraud may involve at least ₹80 crore. The bank has now expanded the scope of its inquiry.

Incident Details:
The case began in November when a customer from the MG Road branch in Bangalore reported that ₹2.7 crore had disappeared from their account. Following this, several other clients have come forward, alleging irregularities with their funds. The Karnataka government has instructed the Bangalore City Police to transfer the case to the Criminal Investigation Department (CID) due to the substantial amount involved, exceeding ₹5 crore. Standard Chartered Bank confirmed that an investigation is underway.

Bank’s Response:
The bank stated, “Our customers’ interests are our top priority. An internal review revealed irregularities by an employee at the branch. The matter was immediately reported to the police, resulting in the employee’s arrest and termination.” Affected clients have been contacted, and an internal probe is ongoing. PwC has been appointed to conduct a thorough investigation after initial internal checks revealed multiple discrepancies.

How the Fraud Was Carried Out:
The accused, Relationship Manager Nakka Kishore Kumar (40), allegedly diverted funds meant for fixed deposits to third parties using forged signatures and the RTGS system. Customers had issued checks of ₹2 crore, ₹50 lakh, and ₹25 lakh for legitimate deposits, but the money was redirected. Following this, five other complaints were lodged against Kumar and the bank. Local authorities are now verifying victims and tracing all misappropriated funds.

Legal Proceedings:
Bangalore’s local court has remanded Kumar in judicial custody. The fraud bears similarities to a 15-year-old scam in Gurgaon at Citibank’s Wealth Management Unit. The bank has assured customers that they are committed to recovering all misappropriated funds and will continue to cooperate fully with authorities.

This case has shaken high-profile clients, many from affluent business families, and highlights the need for vigilance in private banking operations.