Credit Card Fraud Case

Dear client,
In case you are not a victim of your own fault, then you can hope for a refund of your hard-earned money which is confiscated for fraudulent and unauthorized transactions reported to the Cyber Crime Cell. As per RBI guidelines circulated vide notification dated 06/07/2017 regarding Limiting Liability of Customers in Unauthorised Electronic Banking Transactions, a customer’s entitlement to zero liability shall arise where the unauthorized transaction occurs in the following events: 1) Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of whether or not the customer reports the transaction). 2) Third-party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction. On being notified by the customer, the bank shall credit (shadow reversal) the amount involved in the unauthorized electronic transaction to the customer’s account within 10 working days from the date of such notification by the customer (without waiting for settlement of insurance claim, if any). Banks may also at their discretion decide to waive off any customer liability in case of unauthorized electronic banking transactions even in cases of customer negligence. The credit shall be value-dated to the date of the unauthorized transaction. Moreover, the burden of proving customer liability in case of unauthorized electronic banking transactions shall lie on the bank. So, when you did not share credentials like an OTP, CVV, etc., with an unauthorized person, you have to establish your claim before the Bank by adducing substantial proof that supports your claim of no fault on your part to get the refund of the lost money from the Bank. If the bank shows no cooperation in the matter, you may escalate your grievance before the Consumer Forum under Sec. 35 of the Consumer Protection Act, 2019 for deficiency in service claiming a refund of lost money with interest and compensation for harassment. Recently, the division bench of Bombay High Court in the of Jaiprakash Kulkarni and Ors Vs. The Banking Ombudsman and Ors(Citation - 2024:BHC-OS:8627:DB), held that the customer has zero liability when unauthorized transactions occur and directed the Bank of Baroda to refund the amount to the customer debited due to cyber fraud. If required, you may take the service of an Advocate or a cyber law expert for guidance and steps.