₹7.34 crore siphoned in Bhavnagar co-op bank cyber fraud, four arrested

A cyber attack on the Bhavnagar District Co-operative Bank Limited has led to the fraudulent transfer of about ₹7.34 crore, with investigators alleging a coordinated breach of the bank’s core banking system and the use of cryptocurrency channels to move funds abroad.

How the breach unfolded

According to officials, cybercriminals gained unauthorised access to the bank’s system and altered the registered mobile numbers linked to four accounts. The original numbers were replaced with new ones controlled by the attackers, enabling them to bypass alerts and authentication safeguards and carry out transactions.

Investigators said the system was accessed through IP addresses traced to China and Russia, though the exact origin of the attackers remains under verification.

Funds routed through multiple accounts

The siphoned amount was distributed across nearly 135 bank accounts before being allegedly converted into cryptocurrency and transferred overseas using blockchain-based transactions.

Authorities have so far frozen around ₹2 crore from the affected accounts as part of recovery efforts.

Arrests and accused

The State Cyber Crime Cell has arrested four individuals, including one woman, in connection with the case. Three of the accused have been identified as Adnan Usman Sheikh from Fatewadi (Sarkhej), Rubina Sheikh from Rakhial in Ahmedabad, and Kishore Pardeshi from Malad West in Mumbai.

Investigators said the mobile numbers linked to these individuals were used to access the compromised accounts and execute the fraudulent transfers.

Lapses and system vulnerabilities

Preliminary findings point to “serious negligence” on the part of both the bank and the software service provider responsible for maintaining its core banking system, sources said.

Cybercriminals are believed to have exploited technical vulnerabilities in the software, allowing them to obtain admin-level credentials and manipulate account details without triggering immediate alerts, despite the scale of the breach.

Possible wider network

Officials suspect the same group may have targeted 16 to 17 banks across India using similar methods, raising concerns about systemic vulnerabilities in co-operative banking infrastructure.

Further investigation is underway, and authorities expect more details to emerge in the coming days.