An ICICI Bank relationship manager based in Kota, Rajasthan India, has been arrested after allegedly siphoning off ₹4.58 crore (approx. $550,000) from more than 110 customer accounts over a period of three years. The fraud unfolded between 2020 and 2023 and ultimately ended in financial ruin when the stolen funds were lost in stock market investments.
Sakshi Gupta, who served at ICICI Bank’s DCM branch in Kota, is accused of exploiting the bank’s internal “User FD” (Fixed Deposit) system to access customer funds. According to police statements, she activated unauthorised overdraft facilities on 40 accounts and prematurely closed fixed deposits worth ₹1.34 crore across 31 accounts all without the knowledge or consent of her clients.
Investigators also allege that Gupta systematically altered contact details on these accounts, replacing customers’ mobile numbers with those of her relatives. This allowed her to intercept one-time passwords (OTPs) and transaction alerts, effectively concealing her fraudulent activities.
To further mask her actions, Gupta allegedly funnelled the proceeds through a so-called “pool account” belonging to an elderly customer. By February 2023, over ₹3 crore had cycled through this account alone an audacious manoeuvre enabled by her manipulation of bank systems.
Despite her cunning efforts, a routine customer inquiry about a fixed deposit in February 2023 triggered an internal audit, leading to the filing of a first-information report (FIR) and further investigation. Gupta was arrested by Udhyog Nagar police on 31 May 2025 and later remanded in judicial custody.
The stolen funds were channelled into the stock market, but Gupta’s scheme soon unraveled. Sub-inspector Ibrahim Khan confirmed that, “She manipulated multiple systems and bypassed several security measures, hoping to generate high returns. However, the plan backfired.”
Her investments failed to yield profits. Caught in a cycle of escalating losses, she was unable to return the borrowed money as planned, leaving the breached accounts depleted and customers affected.
ICICI Bank has condemned the incident, describing it as a violation of its zero‑tolerance policy against fraud. A spokesperson stated: “The interests of our customers are of paramount importance. Immediately upon discovering the fraudulent activity, we filed an FIR and suspended the employee. Genuine claims of impacted customers have been settled.”
The bank confirmed that claims have been processed and disbursed to affected customers. It has also initiated stricter internal audits and stepped-up checks on internal transactions.
This case sheds light on the vulnerabilities within banking systems, particularly when stringent KYC (Know Your Customer) and transaction-monitoring measures are circumvented. Analysts warn that insider fraud in banks though rare can cause significant financial damage when internal controls are weak.
Legal experts point to the need for digital verification protocols that cannot be easily manipulated internally. Consumer advocates echo this sentiment, calling for more robust regulatory safeguards to protect against insider threats.
For many customers, the incident has triggered a crisis of trust. In statements to Indian media, customers expressed anxiety: “Where should we keep our money? We can’t keep it at home, now we can’t keep it with the bank. What should we do?”
Police investigations continue to determine whether Ms. Gupta acted alone or had accomplices. Asset-tracing efforts are underway to recover funds, though authorities caution that significant losses may not be recoverable given the failed investments.
Legal proceedings are expected to begin under sections of India’s Indian Penal Code and the Prevention of Corruption Act. If found guilty, Gupta could face a lengthy prison sentence and substantial fines.
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