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50 people pull out Rs 6.14 cr using UPI lacuna; BoM files case

UPI allows account holders across banks to send and receive money from their smartphones

Press Trust of India  |  Pune 

50 people pull out Rs 6.14 cr using UPI lacuna; BoM files case

Bank of Maharashtra (BoM) has filed a case against 50 people, who allegedly cheated the bank by illegally pulling out Rs 6.14 crore from its pool account taking advantage of "lacuna" in the United Payment Interface (UPI) application.

"In this case, 70 per cent people who had two accounts, one in Bank of Maharashtra and in another bank, had sent the "receive" money request to their Bank of Maharashtra account, to take advantage of the bug in the application developed by InfraSoft Tech," said a police officer with the cyber cell.

He said generally when a person makes a request of "receive" money from other account and if the person accepts the request, it goes to bank and if there are insufficient funds in the account, the bank sends the message to InfraSoft, stating that there are "insufficient" balance and Infrasoft later sends the same message to National Payments Corporation of India (NPCI) which does not clear the funds.

"However, in this case, people who received the money, had sent request of 'receive' money to other account holders of BoM (in 70 per cent cases, these people, who had two accounts, one in BoM and other in some other bank) despite knowing that there are no funds in the BoM account and accepted the request," said the officer.

The Shivajinagar police have registered a case under IPC sections 420 (cheating), 120 B (criminal conspiracy) and relevant sections of the Information Technology Act.

The cyber cell of Pune Police is now investigating the digital fraud, which took place between December 1, 2016 and January 18, 2017.

The allows account holders across banks to send and receive money from their smartphones without entering bank account details.

First Published: Sat, March 11 2017. 03:47 IST
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