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- Funds were allegedly diverted by replacing vendor QR codes with personal payment codes.
- The fraud stayed hidden for months due to manipulated bank statements.
- Investigators say similar crypto-linked financial abuses are rising in India.
Indian investigators are probing a rare case of financial fraud at India’s Permanent Mission in Geneva after a former accounts officer allegedly diverted public funds into his personal account to finance crypto trading and online gambling. The case has raised fresh questions about internal controls in overseas missions and the growing misuse of digital payment systems.
How the Alleged Fraud Unfolded
According to officials familiar with the investigation, Mohit, who joined the Geneva Mission in December 2024, was entrusted with submitting payment documents to Union Bank of Switzerland (UBS). The Mission regularly pays local vendors using invoices embedded with QR codes that contain bank details.
Investigators believe Mohit exploited this system by quietly swapping legitimate vendor QR codes with ones generated by him. Payments that should have gone to vendors were instead routed to his personal Swiss franc account. Over several months, more than CHF 200,000—roughly ₹2 crore—was allegedly siphoned off in this manner.
The fraud went undetected because acknowledgement slips attached to the original invoices were not altered, allowing payments to pass routine checks.
Altered Records and Delayed Detection
To avoid scrutiny, Mohit is accused of manipulating monthly bank statements used for internal reconciliation. His name was allegedly replaced with vendor names, masking the diversion. The scheme came to light only after auditors flagged duplicate payments to a local travel firm, prompting a deeper review of the accounts.
Officials say Mohit later submitted a written confession, admitting the funds were used to bankroll crypto-related gambling and online betting activities.
Repatriation and Recovery Efforts
Following the discovery, Mohit was repatriated to India. Investigators confirmed that he returned part of the money shortly before leaving Switzerland, with several deposits credited back to the Mission’s account. However, authorities say a significant portion of the funds remains unaccounted for.
The CBI has registered a case citing criminal breach of trust, forgery, falsification of accounts, and violations under the Prevention of Corruption Act.
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A Broader Pattern of Abuse
Officials stress the Geneva Mission case is not isolated. Recent investigations have uncovered multiple instances of public officials diverting funds to fuel high-risk online trading, gambling, and crypto activities. Separately, under Operation Chakra-V, the CBI has also dismantled a SIM-box-based phishing network linked to large-scale digital fraud.
Together, these cases highlight how weak oversight and evolving digital tools can be exploited for financial crimes. Investigators say tightening controls around QR-based payments and digital access will be critical to preventing similar breaches in the future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
