'We're Figuring Out Where Money Has Gone', Says IDFC First Bank After Rs 590 Cr Employee Fraud

After the IDFC First Bank detected an 'employee' fraud involving accounts linked to the Haryana government, the lender's top management noted that they're tracking where the money has gone.

"We're figuring out where the money has gone, and to the extent that money is lying the account" the bank noted on Haryana government deposits, which roughly constitute 0.5% of their total deposit. An outflow of about ₹200-odd crores has occurred in this case since the fraud was detected on February 18.

Further, it noted that it will block the money that has not left the system and "try to recover those dues."

Meanwhile, RBI Governor said, "We are watching the developments. There’s no systemic risk here."

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IDFC Bank's New 'High-Value' Transaction Safety Measures

After being de-empanelled by the Haryana government, IDFC First Bank, said it will bring out an "explicit system based on confirmation of high-value transactions".

"We will take an explicit confirmation from the customer and we'll make it mandatory. The customer's confirmation will then be captured through a verified digital channel with a stipulated window, meaning that the customer," according to IDFC First Bank

For instance, if you want to clear a particular transaction, IDFC First Bank will "trigger an alert for you to specifically go to your app and say that yes, please clear the transaction, which is expected to bring "extra control".

On other hand, the bank also intends to place an AI-centric security feature.

"AI will do an initial checking and then it will be double confirmed by the human. So therefore, exceptions handling will be better controlled," according to IDFC First Bank.

Meanwhile, it will also "deeply study how collusion happened" and how it could have prevent this Rs 590 crore employee fraud.