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Standard Operating Procedure (SOP) for Debit Freeze of Suspected Bank Accounts in Puducherry

In response to the increasing number of cybercrime incidents, the Office of the Deputy Inspector General of Police, Puducherry, has established a Standard Operating Procedure (SOP) for the freezing and unfreezing of suspected bank accounts. This SOP aims to streamline the investigation process for financial cybercrimes, ensuring that fraudsters are held accountable while protecting innocent citizens.

Background

Cybercrime complaints in Puducherry are primarily reported through the National Cyber Crime Reporting Portal (NCRP) and the Cyber Crime Helpline (1930). With the increasing complexity of financial crimes, there has been a surge in suspected bank accounts being frozen or lien marked. These accounts may belong to fraudsters, their associates, or even legitimate customers unknowingly involved in fraudulent activities.

Current Status and Challenges

• 2022: The implementation of the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) in November 2022 marked the beginning of systematic account freezing.
• 2023: Cyber Cell Puducherry has successfully frozen and investigated over 60 cases, recovering INR 2.86 crores. However, with the rise in cybercrimes, there is a need for a formalized SOP to handle these cases effectively.

SOP for Debit Freeze of Suspected Bank Accounts

Money Flow Investigation:

• Download the money flow information from the CFCFRMS module of the NCRP.
• Establish the flow of money from the victim's account to the suspect accounts.

Issuing Notices:

• Issue notices under Section 102 of the CrPC to concerned banks or financial intermediaries to freeze all accounts involved in the fraudulent money flow.
• Ensure follow-up with banks to confirm the freezing of accounts as per the notices.

Handling Lien Marking and Freezing:

• Determine whether lien marking or complete freezing is necessary based on the nature of the fraud.
• Ensure inter-state cooperation if the suspect account is involved in fraud across multiple states.

Action on Frozen Accounts:

• If funds from the victim are available in the frozen accounts, issue a notice under Section 91 of the CrPC to the account holder for document submission within seven days.
• If the account holder does not respond, file a petition under Sections 457 and 458 of the CrPC to transfer the fraudulently obtained funds back to the victim’s account.

Handling Account Holder Claims:

• Conduct a detailed inquiry if the account holder claims the funds. If the claim is found genuine, request the partial unfreezing of the account while retaining the fraud amount.
• If the claim is not genuine, reject it and advise the account holder to seek redress through the appropriate legal channels.

Dealing with Multiple Frauds:

• Coordinate with law enforcement in other states to handle accounts involved in multiple fraud cases.
• Ensure that such accounts remain frozen unless all claims and investigations are resolved.

Unclaimed Money in Frozen Accounts: