Ahmedabad, October 26: A consumer court in Gujarat recently directed a bank to compensate a cyber fraud victim, stating that if the bank has been alerted about the fraud, they must compensate the customer. The Consumer Disputes Redressal Commission (CDRC) of Navsari said that a bank is liable to compensate its customers for the money lost in cyber fraud. The bank also said it is serious carelessness on the part of them if they fail to do so.

Commission Orders Bank to Compensate Victim

As per a report in the Times of India, the commission made the observations while directing the State Bank of India (SBI) to pay a victim of UPI cyber fraud Rs 39,578. The court opined that the victim herself walked into the bank's branch and alerted officials after she lost the money. The commission also slammed the bank while noting that they could have taken action as they had all the technical details to know where the money was deposited. Cybercrime in Gujarat: Chinese Man Makes Football Betting App, Dupes 1,200 People for Over Rs 1,400 Crore.

Customer Loses Rs Rs 59,078 in UPI Cyber Fraud

The incident of cyber fraud took place on December 22, 2021, when the victim, identified as Vidhi Suhagiya, a resident of Navsari, allegedly lost Rs 59,078 in cyber fraud. In her complaint, Vidhi Suhagiya said the money was debited without her knowledge. Following the incident, she approached bank officials and informed them about the fraud.

Victim Informs Bank About Cyber Fraud

The victim even lodged a complaint with the cyber crime helpline, which managed to freeze Rs 19,500 deposited in a Federal Bank account. Following the court's order, cops transferred the money to her account. However, the CDRC slammed the bank, which argued that it was the customer’s mistake for the alleged fraud. As the bank refused to return Rs 39,578, the victim sent a legal notice.

The bank did not respond to her notice, after which she approached the commission. During arguments, the bank's advocate said that it was the customer's mistake and, hence, the SBI was not liable to compensate the victim. Coming down heavily on the bank, CDRC said the victim informed the bank about the fraud the same day. The court also said that "there is no evidence on record that the bank had acted on the complaint". Gujarat: Minor Boy Spends Rs 13 Lakh From Grandfather’s Account on Online Gaming and Purchase of High-End Mobile Phones.

The court observed that it was the bank's failure to stop the payment and freeze the amount. The commission also stated that the bank also failed to recover the amount. The CDRC said the bank "committed serious carelessness and a mistake in service".

(The above story first appeared on LatestLY on Oct 26, 2023 06:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).