FD Scam Alert: ICICI Bank Employee Steals ₹4.58 Crore; Senior Citizens Targeted

As per a recent ET Wealth Online report, a major internal fraud involving ₹4.58 crore was uncovered at ICICI Bank’s Kota branch. A young relationship manager manipulated fixed deposits (FDs), overdrafts and personal loans from unsuspecting customers, primarily senior citizens, using the funds to engage in speculative futures and options trading over 3 years.

Details of the ₹4.58 Crore FD Fraud

Report said that the 26-year-old female employee committed the fraud during her tenure from 2020 to 2023. She targeted 31 customer accounts, withdrew ₹1.35 crore by prematurely breaking FDs, created unauthorised overdrafts, and even secured personal loans in other people’s names. The transactions were masked using the bank’s internal digital systems and the Insta Kiosk platform.

She diverted OTPs and alerts by altering the mobile numbers linked to customer accounts, effectively blocking any trace of her activities from the real account holders. The fraud was carried out using online banking facilities and debit cards of four customers without their knowledge.

F&O Trading as the Main Motive

As reported by ET Wealth Online, the stolen funds were funnelled into the stock market, specifically into the derivatives segment, including futures and options. The accused used trading platforms like ICICI Direct and Zerodha. To manage the inflow from various accounts efficiently, a pool account was used to consolidate and transfer money into her trading accounts.

Despite continuous losses in the stock market, the manager kept fuelling her trades with fresh funds from more customer accounts. She even borrowed money from her father-in-law to invest in the market.

Fraud Discovery by Internal Audit Team

The fraud was so intricately masked that even the branch manager and fellow employees remained unaware. It was ultimately the internal audit team at ICICI Bank that identified the irregularities. Upon discovery, the bank immediately initiated an FIR with the police.

The accused was arrested on May 31, 2025, by Udyog Nagar police in Kota during her sister’s wedding. The charge sheet is pending while further investigation continues. Police suspect the involvement of more individuals in the elaborate fraud scheme.

Senior Citizens Targeted in the Scam

ET Wealth reported that most victims were elderly and less proficient in digital banking tools. These customers had placed their trust in traditional banking instruments like fixed deposits, making them vulnerable to the scam. Their lack of regular monitoring over digital notifications enabled the fraudster to operate without immediate detection.

Read More: Common Mistakes to Avoid When Investing in Fixed Deposits! 

ICICI Bank's Action and Customer Assurance

ICICI Bank responded quickly once the fraud was discovered. All affected customers have been fully compensated. A spokesperson from the bank stated that protecting customer interests remains a top priority and that a zero-tolerance approach towards fraudulent activity is strictly enforced.

The employee was suspended immediately, and the bank assured that all genuine claims have been addressed. The audit team's role in exposing the fraud highlights the importance of rigorous internal checks within financial institutions.

Conclusion

The ICICI Bank fraud case, as revealed by ET Wealth Online, highlights significant risks when internal banking controls are exploited. Though the bank refunded all impacted customers, the incident raises critical concerns about security, monitoring mechanisms, and protection for less tech-savvy account holders.

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