Now Fraud in City Union Bank, Amounting Rs 12.8 Crores

Fraud in City Union Bank – Past week was really very bad for India’s Banking sector. Post PNB scam,City Union Bank  said it suffered three fraudulent remittances of nearly USD 2 million (about Rs 12.8 crore). The mode of fraud is similar to Punjab National Bank scam involing SWIFT.

As like fraud at Punjab National Bank (PNB), no entries of remittances were made in the ledgers & CBS of City Union Bank and fund transfers were pushed through the SWIFT financial platform. 

Read – PNB Scam – How it Happened through Letters of Undertaking (LOU) ?

The CEO of City Union Bank citing this transacion as Cyber Fraud as he infored that out of three fraudulent remittance, one remittance was made through Standard Chartered Bank, New York, to a Dubai based bank for USD 5,00,000 which was blocked immediately and was returned to City Union Bank.

The other two transactions i.e. 300,000 euros ($372,150) was routed through a Standard Chartered Bank account in Frankfurt to a Turkish account, although the Turkish lender had blocked the transfer from being finalised.

Read – PNB Detected Rs 1.13 Lakh Crore Fraudulent Transactions

A third totalling $1 million was sent through a Bank of America account in New York to a China-based bank, which Kamakodi on Sunday identified as Zhejiang Rural Credit Cooperative Union in Hangzhou, China.

These two banks scam surely put security risk on transaction made through SWIFT platform.