Bengaluru Police Arrest Four in Rs 12.5 Crore Fraud Targeting CRED
Bengaluru: City police have arrested four individuals from Gujarat for defrauding credit card payments company CRED of ₹12.5 crore through an elaborate scheme involving forged documents and mule accounts.
Key Suspects and Scheme Details
The mastermind, Vaibhav Pitadiya (33), a relationship manager at Axis Bank in Gujarat, exploited his position to identify vulnerabilities in CRED’s systems. He orchestrated the fraud with the help of an Instagram acquaintance, Neha Ben, who impersonated CRED’s managing director.
Neha submitted counterfeit Corporate Internet Banking (CIB) forms with forged board resolutions and letterhead documents to Axis Bank’s Ankleshwar branch in Bharuch, Gujarat. These documents allowed the group to update contact details and gain unauthorized access to CRED’s corporate accounts.
Using the new credentials, the suspects transferred ₹12.5 crore to 17 mule accounts across Gujarat and Rajasthan between October 29 and November 11.
Fraud Discovery and Arrests
The fraud came to light on November 13 during a reconciliation exercise by CRED, which reported discrepancies in its accounts. The company immediately alerted Axis Bank and filed a police complaint on November 15.
Bengaluru police traced the transactions to the Ankleshwar branch and detained Neha on December 21. Her confession led to the arrest of Pitadiya and two accomplices, Shubham and Shailesh, who had created the mule accounts.
Seized Items and Further Investigations
Police recovered:
- ₹1.28 crore in cash
- Two mobile phones
- Fake CIB forms
Efforts are ongoing to recover the remaining funds. Authorities intercepted another attempted fraud involving a separate CRED-linked account, preventing further losses.
Police Statement
“Pitadiya exploited inactive corporate accounts linked to CRED’s nodal account and used sensitive data to forge documents. The suspects confessed during interrogation and remain in police custody for further investigation,” an official said.
This case highlights the need for stringent security measures in corporate banking systems to prevent similar frauds.
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