ICICI Bank Employee Arrested for ₹4.58 Crore Fraud in Kota

₹4.58 Crore Fraud at ICICI Bank Kota: How a Relationship Manager Exploited the System Over Three Years

A high-profile internal fraud at ICICI Bank's DCM branch in Kota, Rajasthan has drawn renewed attention to insider threats in India’s banking sector. Former relationship manager Sakshi Gupta was arrested on May 31, 2025, after investigators uncovered a calculated embezzlement scheme spanning nearly three years and involving ₹4.58 crore siphoned from customer accounts.

Timeline of the Fraud

Period of Fraud: 2020–2023
Arrest Date: May 31, 2025
Number of Victims: 41 customers (spread across 110 accounts)
Amount Involved: ₹4.58 crore

Breakdown of the Fraud Scheme

1. Fixed Deposits & Overdraft Manipulation

Gupta allegedly prematurely closed fixed deposits of 31 customers without their knowledge, redirecting ₹1.34 crore into accounts she controlled. Simultaneously, overdrafts were activated on 40 accounts, allowing unauthorized withdrawals far beyond permissible limits.

2. Customer Credential Tampering

To intercept all communication, she changed the registered mobile numbers and emails linked to multiple accounts—often replacing them with numbers linked to relatives or associates. This blocked OTPs and alerts from reaching legitimate account holders and enabled misuse of debit cards and online banking access.

3. Unauthorized Personal Loans

At least ₹3.4 lakh worth of personal loans were fraudulently sanctioned in customers’ names. The disbursed funds were redirected to accounts outside the bank or potentially shell accounts.

4. Use of a ‘Pool’ Account

Investigators found that more than ₹3 crore passed through the account of a senior citizen—an unsuspecting individual whose profile was used as a funnel for laundering stolen funds.

5. Exploitation of Digital Banking Tools

Gupta used the bank’s internal tools like the ‘User FD’ interface, Insta Kiosks, and net banking systems to conduct intra-bank transfers. These transactions were carefully masked to appear as genuine, initiated by customers themselves.

6. Stock Market Losses

A significant portion of the embezzled funds was funneled into high-risk equity and F&O trades via platforms such as Zerodha and ICICI Direct. Reports suggest most of the money was lost in speculative trades.

Legal Action and Investigation

The scam came to light in February 2025, when a customer flagged a missing fixed deposit. After a preliminary audit, the Branch Manager Tarun Dadhich filed an FIR with the Udhyog Nagar Police on February 18.

Gupta was later arrested from her residence in Rawatbhata (Chittorgarh district) and has been remanded to judicial custody. Investigators are now probing whether any other employees or external actors were involved.

ICICI Bank's Response

Immediate Suspension: Gupta was suspended following internal inquiry.
FIR Filed Promptly: The bank lodged a formal complaint after discovering irregularities.
Customer Protection: ICICI stated that affected customers were fully compensated, with no financial liability passed on.
Internal Audit Review: The bank announced a strengthening of internal control systems to prevent future occurrences.

Red Flags and Risk Learnings

Systemic Gaps

Lack of dual authorization for profile changes and loan disbursals
Inadequate alerts when customer credentials were altered
Delayed detection, as the fraud was unearthed only after a customer complaint

Vulnerable Customers

Senior citizens and digitally less-active users were disproportionately affected
Most victims trusted bank staff, unknowingly exposing themselves to credential misuse
Absence of real-time alerts left many unaware of what was happening in their accounts

What Can Customers Do?

To avoid falling victim to similar schemes, consider these best practices:

Check your account statements and FD details regularly Verify registered mobile and email IDs through the bank’s online portal Don’t share OTPs or banking credentials, even with bank personnel Report immediately if:

What’s Next?

The investigation continues. Police are exploring:

Whether others within or outside the branch were complicit
How the fraud went undetected for nearly three years
Whether core banking oversight systems need overhauling

Meanwhile, regulators like the RBI and ICAI are expected to review audit protocols, staff access controls, and compliance layers across the sector.

Conclusion

The ICICI Kota fraud underscores the serious threat of insider manipulation in Indian banking. While customers were ultimately protected in this case, the incident raises uncomfortable questions about how long such frauds can go unnoticed—and how dependent the system is on customer vigilance to flag red flags.