TN woman loses Rs 50,000 in ‘phishing scam’, wins Rs 1.1 lakh compensation from bank

SMS offer, loss of funds

According to the complainant, she had received an SMS claiming to offer a reward of Rs 12,980. After clicking the link and logging in with her banking credentials, she allegedly received an OTP message and shortly after that she discovered that Rs 50,000 had been debited from her account through the addition of an unauthorised beneficiary.

The complainant stated that she immediately contacted the bank’s customer care, lodged an online complaint and also filed a complaint with the cybercrime authorities. She then approached the consumer commission seeking Rs 1 lakh compensation and a refund of the lost amount.

The bank contested the complaint, arguing that the transaction was completed only because the complainant voluntarily entered her username, password and OTP after clicking a phishing link. The bank maintained that it had complied with all RBI-mandated security protocols and that the loss resulted from the customer’s own negligence rather than any deficiency in banking services.

‘Bank obligated to act’

The commission observed that immediately after learning her account was debited of Rs 50,000, the complainant contacted the bank and lodged a complaint, but the bank failed to produce any document to prove what action was taken afterward. It noted that once a customer promptly reports an unauthorised electronic transaction, the bank cannot remain passive and then argue that it bore no responsibility just because the customer initially entered her credentials.

“The opposite party (bank) has repeatedly pleaded that the complainant herself authenticated the transaction. Even assuming that the complainant inadvertently disclosed her credentials while falling victim to a sophisticated phishing attack, that circumstance alone cannot absolve the Bank from its independent obligation to act upon the immediate complaint lodged by its customer,” the commission observed.

It held that banking institutions cannot evade accountability by mechanically attributing every unauthorised transaction to customer negligence, particularly when the customer has acted immediately upon receipt of the bank’s own fraud alert.

The commission remarked that the complainant suffered financial hardship, mental agony and unnecessary inconvenience due to the deficient service rendered by the bank. It allowed the complaint and granted relief to the customer.

Takeaway

Consumers who fall victim to cyber fraud may still be entitled to relief if they act promptly and the bank fails to take adequate steps after being notified. The ruling emphasises that banks cannot be made insurers against every cyber fraud, but banking institutions cannot evade accountability by mechanically attributing every unauthorised transaction to customer negligence.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Tamil Nadu: 044-285-92828) or call the National Consumer Helpline at 1915 for assistance.

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