The Employee Provident Fund Organisation (EPFO), which has stumbled upon a fake cheque scam worth lakhs of rupees to siphon off money from provident fund accounts of employees, has instructed all regional offices to ensure that most payments take place through national electronic fund transfer (NEFT).
"The only solution to stop such practices is to transmit the claim proceeds through NEFT or real time gross settlement to the fullest extent," the EPFO said in its instruction to field offices issued on recently.
The EPFO observed that even one year after implementation of e-payment modalities through NEFT, there are still some field offices that have not achieved the target of 70% and above in payment through the process. In its fresh order, the EPFO instructed all field offices to issue advertisements in local dailies and send direct mailers to employers and trade unions, educating them about the benefits of payment through NEFT and RTGS.
"All officers-in-charge of regional and sub-regional offices are advices to take all precautionary and safety measures on priority so that such forged and fake cheques are not encashed and payment through NEFT and RTGS is restored," the order said.
The EPFO manages over Rs 3 lakh crore retirement savings of 4.7 crore subscribers. Instances of such fakes have been reported by regional offices of Kolkata, Shimla, Jaipur, Delhi, Chandigarh and sub-regional office of Bhatinda.
"About Rs 1 crore has been siphoned off so far through issue of fake cheques over the last nine-ten months and there are chances that such incidents would grow if not checked at once," an EPFO official
The modus operandi for such frauds is simple. Fraudsters somehow get access to cheque folios supplied by State Bank of India to the EPFO. Fake cheques bearing the same numbers are then printed with random names and amounts. The fraudsters then open accounts in these fake names in rural banks in remote areas that are happy to get business and do not go through the due diligence process before opening an account. The money is withdrawn the moment SBI clears payments.
"It is a flawless operation. The paper used for the cheques and the forged signature of the issuing officers are so perfect that it is difficult for SBI to spot it," the official said.
SBI has agreed to give back some of the money that has been fraudulently withdrawn. "The matter is being looked into and if required action will be taken to curb any such menace," an SBI official said.
Src: ET
"The only solution to stop such practices is to transmit the claim proceeds through NEFT or real time gross settlement to the fullest extent," the EPFO said in its instruction to field offices issued on recently.
The EPFO observed that even one year after implementation of e-payment modalities through NEFT, there are still some field offices that have not achieved the target of 70% and above in payment through the process. In its fresh order, the EPFO instructed all field offices to issue advertisements in local dailies and send direct mailers to employers and trade unions, educating them about the benefits of payment through NEFT and RTGS.
"All officers-in-charge of regional and sub-regional offices are advices to take all precautionary and safety measures on priority so that such forged and fake cheques are not encashed and payment through NEFT and RTGS is restored," the order said.
The EPFO manages over Rs 3 lakh crore retirement savings of 4.7 crore subscribers. Instances of such fakes have been reported by regional offices of Kolkata, Shimla, Jaipur, Delhi, Chandigarh and sub-regional office of Bhatinda.
"About Rs 1 crore has been siphoned off so far through issue of fake cheques over the last nine-ten months and there are chances that such incidents would grow if not checked at once," an EPFO official
The modus operandi for such frauds is simple. Fraudsters somehow get access to cheque folios supplied by State Bank of India to the EPFO. Fake cheques bearing the same numbers are then printed with random names and amounts. The fraudsters then open accounts in these fake names in rural banks in remote areas that are happy to get business and do not go through the due diligence process before opening an account. The money is withdrawn the moment SBI clears payments.
"It is a flawless operation. The paper used for the cheques and the forged signature of the issuing officers are so perfect that it is difficult for SBI to spot it," the official said.
SBI has agreed to give back some of the money that has been fraudulently withdrawn. "The matter is being looked into and if required action will be taken to curb any such menace," an SBI official said.
Src: ET
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