Paytm Payments Bank Fraud Investigation

Noida Police have arrested two employees of Paytm Payments Bank for allegedly misusing their access to unfreeze accounts linked to cyber fraud, releasing nearly ₹30 lakh without legal authorization. The accused, Chandresh Rathore and Tariq Anwar, violated legal procedures by releasing funds from accounts frozen during ongoing investigations without permission from law enforcement or courts.

Paytm Payments Bank Fraud InvestigationPaytm Payments Bank Fraud Investigation

The investigation began in August 2023 after the bank filed a complaint regarding internal malpractice. It was discovered that the employees colluded with an intermediary who contacted account holders whose accounts had been frozen due to suspected fraud. These individuals reportedly paid bribes to have their accounts unfrozen.

Paytm Payments Bank Fraud InvestigationPaytm Payments Bank Fraud Investigation

Authorities suspect that this illegal operation may have been ongoing for several years, raising concerns about internal oversight at Paytm Payments Bank. Investigators are reviewing digital and financial records to identify additional employees involved in the scheme.

The accused have been charged under relevant sections of the Indian Penal Code and the Information Technology Act and are now in judicial custody. This incident highlights the growing threat of insider fraud in the fintech sector, prompting calls for stricter compliance audits and fraud detection systems in digital banking.