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ATM thieves cashed in on a simple loophole in machines

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Express news service

Posted: Feb 02, 2008 at 0024 hrs IST

Vadodara, February 1 Following a demonstration of the modus operandi used by Mehul Shah and Kalpesh Soni, who siphoned off Rs 99 lakh from nine ATMs of two private banks, the police on Friday found that the two used a simple but a glaring loophole in the security of ATMs.

Vadodara Commissioner of Police Rajan Priyadarshee personally witnessed the demonstration in the presence of officials from the banks and CMS Securitas Agency, where the duo worked. The duo's method was simple, as they reported false amounts refilled in the ATMs while manually refilling it, pilfering some cash bundles in the past nine months and not fortnight as was believed earlier. Senior police officials have suggested that the entire system be revamped and security radically improved.

“The ATM counts money only when customers withdraw some amount. It does not count the amount when being refilled, which is what the duo took full advantage of,” Priyadarshee said. He added that the duo used to enter a fake amount in the ATM records, whereas the actual amount they fed into it was far lesser.

Panigate police sub-inspector A K Parmar, who is investigating the case, said that top officials from CMS demonstrated the correct way to refill the money in an ATM as compared to what the accused did, which gave the police a clear picture. “We were little surprised as to how they managed to steal Rs 1 crore without any one finding out. The mist cleared after this demonstration,” he said. The police believe that more people could be involved in the crime, including a few bank personnel.

Parmar said that Arvind Shah, one of the three stockbrokers who allegedly invested the stolen money for Shah and Soni in the stockmarket, is the one who used the money illegally as there was no paperwork. “Another broker Pinal Jhaveri has complete documentation of the investments made,” he said.

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