Cybercriminals have allegedly siphoned off more than Rs 22 crore from bank accounts maintained by the Tamil Nadu Rural Development Department, targeting three Panchayat Unions across the state. The Chennai Central Crime Branch (Cyber Crime) has registered a case and formed special teams to investigate the fraud, which is suspected to have originated from multiple countries.
According to reports, Rs 14 crore was stolen from the Mandapam Panchayat Union in Ramanathapuram district, Rs 5 crore from the Dharapuram Panchayat Union in Tiruppur district, and Rs 3.10 crore from the Nagapattinam Panchayat Union. The funds had been allocated for various rural and panchayat development projects.
Preliminary investigations indicate that the fraud was carried out using a similar modus operandi across all three Panchayat Unions, pointing to the involvement of an organised cybercrime network.
The Panchayat Unions used a dedicated online portal to facilitate the transfer of funds from bank accounts to local administrative bodies. Panchayat secretaries and other officials relied on the portal for financial transactions. The cybercriminals allegedly exploited a technical vulnerability in the portal’s security system to gain unauthorised access and obtain the login credentials of government officials.
Using these credentials, the gang reportedly transferred government funds into fraudulent bank accounts before withdrawing the money.
During the investigation, police analysed email communications and IP addresses associated with the cyberattacks and reportedly traced their origins to Bangladesh, the United States and Greece. Investigators suspect that an international cybercrime syndicate operating from overseas may be behind the operation, potentially with the assistance of intermediaries in India.
The stolen funds are suspected to have been routed through multiple bank accounts before being transferred abroad. Police are currently tracing the beneficiary accounts and taking steps to freeze them to prevent further withdrawals. Bank officials and government personnel responsible for managing the Panchayat Union accounts are also likely to be questioned as part of the investigation.
The large-scale theft from government accounts has raised serious concerns over the cybersecurity infrastructure protecting Tamil Nadu’s digital financial systems, particularly those handling funds earmarked for rural development.
The incident comes after a similar cyber fraud targeting government accounts in neighbouring Puducherry, with cybercriminals now suspected of employing a comparable modus operandi in Tamil Nadu.
The Chennai Central Crime Branch has confirmed that an investigation is underway.
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