Rs 22.10 crore meant for rural infrastructure and health facilities in Tamil Nadu was allegedly stolen in a cyber fraud, prompting an investigation by the Chennai Central Crime Branch's Cyber Crime Wing into the security of government banking transactions, news agency IANS reported on Wednesday, November 11. The money had been allocated to the Rural Development Department under the 15th Finance Commission.

Source: IANS via The Freedom Press

According to IANS, an account linked to Mandapam in Ramanathapuram district suffered the biggest loss, with Rs 14 crore allegedly siphoned off. Another Rs 5 crore was allegedly diverted from Dharapuram in Tiruppur district, while the remaining Rs 3.10 crore was reportedly taken from Tambaram. An earlier Dinamalar report, which first reported the fraud on November 9, had named a panchayat union in Nagapattinam district for the Rs 3.10 crore account; the two accounts of the third loss therefore differ between reports and remain to be officially clarified.

Source: IANS via The Freedom Press

Investigators suspect the perpetrators exploited access to a specialised transaction portal — developed in collaboration with a private banking institution — to move the funds, and that the transfers were executed within two hours of the treasury crediting the money, IANS reported. They are examining whether government officials' login credentials were compromised and whether any bank personnel facilitated the fraud; neither has been established.

Source: TelecomLive

The Cyber Crime Wing suspects an international cybercrime syndicate may have orchestrated the operation, and one line of enquiry concerns the possible involvement of a Nigerian gang using local networks in Chennai, Coimbatore and Tiruppur — a suspicion that remains under investigation and has not been proven, according to IANS. The money was allegedly routed through multiple mule accounts, which investigators are working to identify and freeze, and efforts are under way to trace the IP addresses used for the transactions.

The stolen funds had been earmarked for rural development projects, including the construction of rural health and wellness centres. Authorities are also examining whether the case is linked to a similar cyber fraud recently reported in Puducherry. The alleged fraud has drawn political criticism, with BJP leaders questioning the state government's administrative oversight and cybersecurity arrangements. The investigation is continuing.