Two men accused of stealing cash from ATM users by placing a transparent plastic sheet over cash dispenser slots were arrested by the KPHB police on Wednesday (June 17).

When customers attempted to withdraw money, the machine would process the transaction and debit the amount from their accounts, but the cash would remain trapped behind the plastic sheet. Believing the ATM had malfunctioned, customers would leave the booth without collecting the money. The accused would then remove the sheet, retrieve the cash and flee, police said.

The accused were identified as Vadde Katamayya, 25, a resident of a men’s hostel in KPHB and originally from Anantapur district in Andhra Pradesh, and Pallapu Srinivas, 48, a resident of KPHB Colony and a native of Kakinada. Both were produced before a court and remanded to judicial custody.

According to police, the duo met while lodged in Sangareddy Jail and subsequently teamed up to target ATM centres across the city. Investigators said Srinivas would stand outside the ATM booth and keep watch, while Katamayya entered the kiosk and fixed a transparent plastic sheet over the cash dispensing slot.

Officials said victims who reported the issue to their banks would often receive refunds after verification, allowing the accused to pocket the stolen cash while the bank bore the financial loss.

The case came to light following an incident on June 7 at a Union Bank ATM in KPHB Phase 9. A customer attempted to withdraw ₹5,000 but did not receive the cash despite the amount being debited from the account. After being informed, bank officials examined CCTV footage, identified suspicious activity involving two individuals and lodged a complaint with KPHB police.

The crime team analysed CCTV footage and technical evidence and traced the suspects.

Investigators also found that both accused had been involved in previous criminal cases. Katamayya was earlier booked in a cheating case registered at Miyapur police station, while Srinivas has previously faced cases under the Immoral Traffic (Prevention) Act at Bachupally and Jagadgirigutta police stations.

KPHB ACP Ravikiran Reddy urged the public to remain cautious while using ATMs. He advised customers to immediately alert bank officials and the police if cash is not dispensed despite a successful transaction and to report any suspicious individuals or objects noticed inside ATM kiosks.

Further investigation is under way.