A recent ruling by the Nagpur District Consumer Disputes Redressal Commission has established that the State Bank of India (SBI) failed to act on a customer’s timely complaint regarding cyber fraud. The commission has directed SBI’s Tumsar branch to ensure the customer receives a refund along with interest, signalling the importance of banks’ responsibilities in such incidents.

The commission determined that SBI did not take adequate measures after receiving the complaint, resulting in a lack of necessary action to protect the customer. This ruling highlights SBI’s deficiency in service under the Consumer Protection Act, 2019.

The customer in question is set to be reimbursed Rs. 5,00,250, along with annual interest at the rate of 9% starting from July 18, 2021. Additionally, the bank is liable to pay Rs. 30,000 to cover compensation and litigation costs as part of the ruling.

Implications for Fraud Victims

This case serves as a critical reminder for individuals who may fall victim to cyber fraud. Many victims often presume that their funds are permanently lost. However, it is worth noting that swift reporting of fraudulent activity may result in recovering the lost amounts if the bank neglects to act.

The ruling underscores that customers have rights protected by regulations established by the Reserve Bank of India (RBI). Being aware of these rights can significantly aid victims in navigating the troubling aftermath of such incidents.

Customers can benefit from RBI rules concerning liability for unauthorised electronic transactions, which provide varying degrees of protection depending on how quickly a complaint is reported. Zero liability is extended when fraud occurs due to the bank’s security breach or a third party’s involvement.

Steps to Take After Experiencing Cyber Fraud

Individuals encountering cyber fraud are advised to act without delay. The first step is to report the incident by contacting the cybercrime helpline at 1930 or by visiting cybercrime.gov.in. Additionally, it is vital to communicate with the bank through its official channels, such as a dedicated helpline, mobile application, or bank branch, to block any affected accounts.

Obtaining a written acknowledgment or a complaint reference number is crucial for future records. It is also advisable to maintain comprehensive logs of all communications, including SMS notifications, emails, screenshots, and any call logs related to the incident.

If the bank does not respond or resolve the complaint within a 30-day period, customers have the option to escalate the matter by approaching the RBI Ombudsman through the RBI’s complaint management portal. Alternatively, victims can file a case with their district consumer commission as exemplified in this situation.

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