Rs 3.4 crore ATM fraud unearthed in Hassan

Hassan: A major financial irregularity has surfaced in Hassan district after more than ₹3 crore meant for ATM replenishment allegedly went missing from a private cash management agency. The fraud came to light during a monthly audit conducted on February 18 and 19, prompting police to register an FIR and launch an investigation.

According to the complaint, employees identified as Nandish B.L. and Madhukumar M.P., who were responsible for loading cash into ATMs, allegedly siphoned off ₹3.40 crore by creating fake deposit records. The accused reportedly generated forged receipts indicating that money had been deposited into multiple ATMs, while in reality, no cash was loaded. The complaint states that funds meant for 11 ATMs of Canara Bank, three ATMs of State Bank of India, and one ATM of Bank of India were misappropriated. In total, 18 ATMs across Hassan city limits were shown as replenished in official records.

Raju, branch manager of CMS (Cash Management Services) in Hassan, lodged a complaint at the Hassan Extension Police Station after discrepancies were detected in audit reports. Based on his complaint, police have registered a case and initiated a detailed probe.

Officials suspect that the accused manipulated internal documentation systems to conceal the fraud for several weeks. Police are examining transaction logs, vehicle movement records, and CCTV footage to establish the modus operandi and determine whether others were involved. This is not the first such case in Karnataka. In recent months, similar incidents involving ATM cash misappropriation have been reported, raising concerns over security protocols within private cash-handling firms. Authorities have assured strict action against those responsible and stated that further arrests may follow as the investigation progresses.