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Bank fraud in India – Just 3 simple steps

Earlier, I had heard a lot about bank frauds in the news channels and papers but today I experienced it myself. Though my case is no where related to net banking or anything but it was purely related to forgery. Here is the story:

I bought a laptop for one of my office guys, gave the cheque of Rs. 28,500 to the computer guy’s person (A/C Payee). In the morning the computer guy calls me asks me to stop the payment of that cheque as his person had lost it somewhere. I called up my bank’s customer support, they asked me to call the branch to do it. In between that I checked my bank account and was shocked to see the exact amount withdrawn as cash. (Bearer cheque)

But it was a A/C Payee cheque, so how did it happen? How did the bank allow at the first place? Well, it’s pretty simple and dumb on bank’s part too. The guy copied my signature on top, canceled “Order” word, so it becomes a bearer cheque. I asked the bank to get the photo copy of cheque. After checking it, I found that, the fake signature the guy had made was wrong, it was not same as the original one but still bank allowed him to take the money out.

Also, they gave him money without the company’s stamp. (Generally company’s stamp is required if the cheque is on the name of any company)

Though we have found the person (It was the computer guy’s employee only) but we are planing to lodge complaint to the bank for such negligence. Even a kid can make out that two signs are different.

Btw, this is what the guy did:

– He first went to the bank and asked for the cash against the cheque
– The bank guy tells him, you need to cancel “By Order” and get the sign of the owner
– Guy goes back, copies my sign and withdraws the cash

I never knew bank fraud is so easy.. only 3 steps..

Note: The bank in question is AXIS Bank, the branch is Chembur (Mumbai) branch.

10 Comments

  1. This is really weired! On first hand, how the hell did the employee from PC Shop even imagined to do something.. it never took him long to do.. just came to bank asked for information and got the plan sorted! Is he an expert?

    Secondly, do you suspect the folks at PC Shop or was the fault entirely the employee’s? And its so stupid that the bank officials were so stupid enough to let go the cheque without any cross verification!

    Good job Deep in figuring out the culprit.. the bank plays main role and glad you are filing a case against them as well.

    And with title of post, I wonder when people are going to be very much concerned to consumer and their assets!

    Gosh.. long way ahead! You should have put a note before or after the article.. P.S: The story explained here have been performed by experts and are for analysis only, do not attempt to risk on your own. I am not responsible for any outcome from the steps mentioned here!

    Ha ha.. I know that was funny.. but who knows .. someone could use this as a guide to test a fraud..!

    Cheers,
    Vinay

    P.S: Do update us on the progress..!

  2. Pingback: Finance Friday : Cheques To Get More Secure , Stock Market & The Union Budget | Business, Finance Friday, banking, stock market

  3. Lot of frauds are happening at Axis Bank. Auditors are themselves involved in the Frauds. They want to loot the customer and make money. Please click on the below link if you want to see Axis Bank Ex Staff comments and stop banking with Axis

    Our SBI is great… bankers to the nation.

    http://www.forum4finance.com/2010/07/04/rbi-cut-bank-ceos-pay-basis-poor-performance/

    http://www.moneylife.in/article/8/3717.html

    http://www.taxguru.in/sebi/draft-guidelines-on-compensation-of-whole-time-directorschief-executive-officersrisk-takers-and-control-function-staff.html

  4. P Suryanarayan Murthy 07-Dec-2010 at 12:49 pm

    May I take the liberty of correcting the Caption please ?? It is not a ‘bank fraud’ it is a case of ‘bank negligence’. Fraud if misappropriation, falsification of accounts, forgery, transfering funds with fictitious name to fictitious accounts with an intention to cheat the bank/customer. Please note my friends !!!

  5. It is definitely fraud, the guy changed did the fake signature, modified the cheque and got the cash on a/c payee cheque.

  6. It is a negligence only. Even for material alterations like changing the bearer to order , the banker has not taken minimum precaution. But it is a lesson for those who speak loudly about customer service

  7. It is a negligence only. Even for material alterations like changing the bearer to order , the banker has not taken minimum precaution. But it is a lesson for those who speak loudly about customer service

  8. I have an account with CORPORATION BANK.

    My mother got my passbook updated today which shows that my account has been debited with Rs 150000 on 19 Jan 2012. The cheque number is 334474 in the name of BHARAT DARSHAN.

    Now, I do not remember issuing a cheque of Rs 150000 nor do I know anyone by the name BHARAT DARSHAN.

    Can you please help me locating the details of this transaction as well as advise me further steps so that I can recover my hard earned money.

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