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Lost Money to Bank Fraud? Here's What to Do

  • Highlights

  • Do not let bank fraud go unreported

  • Inform your financial provider within 72 hours of noticing the unauthorised transaction

  • Never disclose your OTP, PIN, CVV, and other sensitive information

Often when it comes to bank frauds, people hesitate from registering bank frauds complaints or starting a bank account fraud investigation because they feel it is hopeless. However, that is not the case, we tend to forget that if we notice and report the bank frauds promptly, we may not have to bear the brunt of it at all.
These days more than ever, it is a must to fight for your stolen money as scammers plague this sector duping innocent people. Worst case even if you are unable to get your money back, at least people can learn from your experience and stay on their guard while transacting financially.

Where does the responsibility lie? 

You and your financial provider are responsible for the safety of your bank accounts, your debit card, and your credit card. In July 2017, the Reserve Bank of India took cognisance of these bank fraud complaints that were related to unauthorised charges to determine the extent of the customer’s liability and set guidelines.

When is it the bank’s responsibility? 

Hackers these days are very sophisticated in their demeanour. These groups are well funded and extremely coordinated & function under a systematic modus operandi. They expose new entry points to compromise networks. This crime has been made easy due to a combination of things such as increased remote working, mobile-device usage, and utilising third-party cloud service providers.

  • If it is a contributory fraud which means due to negligence or some deficiency from the bank’s side. For instance, a technical glitch led to the customer details being compromised. In this case, whether or not the transaction is reported, the bank is fully liable

  • Secondly, in the case of a third-party breach where neither the bank nor the customer has any role to play but the customer informs the bank within 72 hours of being intimated about the unauthorised transaction. A classic example of this scenario is an inadvertent deduction more than once that has not been refunded by the wallet, app, or vendor. Only the first transaction is authorised but the subsequent ones are not


When is it the customer’s responsibility?

The onus falls on the customer under the below mentioned scenarios

  • If there is monetary loss due to your negligence like sharing payment credentials or account-related information, the loss will be borne by the customer, only till the unsanctioned transaction is reported to the financial provider. Inform the bank as soon as you notice any suspicious activity so that the bank will have to accept the losses

  • If you report within 72 hours, you are good to go. If you report between day four and day seven of noticing the unauthorised transaction, then you have limited liability and will have to bear some of the loss. If it is not reported until after seven working days, the bank’s policy declaring the customer liability will be applicable 

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Lost money to bank fraud – Here’s what to do?

Online frauds are on the rise in India and worldwide as people are embracing the digital world. Everything from banking to buying groceries has moved online, stressing the need to be more vigilant and conscious about how one transacts online. Though many steps can help you prevent fraud in the first place, if you are unfortunate enough to fall prey to these online bank frauds, you need to follow these steps.

Reach out to your financial provider

Every bank has a fraud detection system and dispute resolution network to protect their customer from theft. If you notice any unauthorised bank transaction before the bank notices, call the financial provider up to intimate them and block the card to prevent any future transactions. There are many ways to do this: 

  • Call the bank’s customer care number and report the issue 

  • Or log into the net banking or mobile banking account and block the credit and debit card

  • Or physically visit the nearest bank branch and complain to the bank executive 


Zero loss liability in case of timely bank account fraud investigation

As per the Apex bank of India, the RBI, if the loss suffered is due to an unauthorised electronic transaction, and the bank is notified within 72 hours, you may not have to absorb any part of the transaction.

File a report within three days

If you have been a victim of bank fraud, notify your bank with all the details highlighting the fraudulent transactions. You also need to log into https://www.cybercrime.gov.in/ or go to the local police station and register your bank fraud complaint.

Dial the cyber fraud helpline number

To prevent financial impact due to a bank fraud that took place on the internet, call the cyber-crime national helpline number at 155260 to kick-start the bank account fraud investigation. The helpline number is manned by the concerned state police.

Tips to prevent Bank Fraud 

Rather than being a victim of bank fraud, the smarter thing would be to exercise caution and not fall prey to them in the first place. Various tips can help you stay safe from unscrupulous people: 

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1. Conduct internet banking only if you are connected to a secure network and not using public Wi-Fi or any unsecured internet.
2. Do not respond to any unsolicited calls and emails.
3. Do not disclose your financial information such as OTP, CVV and Pin. You have the authority to decline such requests.
4. Keep a strong net banking password and don’t use the same password across all accounts.
5. Download verified and registered banking apps from the play store directly and not from links sent via unknown texts or emails.
6. Shop, browse, and make payments only on verified websites, no matter how professional other websites appear.
7. Be alert while using a debit or credit card. Do not throw the withdrawal slip just anywhere.
8. Keep your systems and software updated and install a good anti-virus software.
9. Do not give remote access to your computer.
10. Always get authentic contact information from the official bank website.
11. Don’t let an offer too good to be true entice you and do not get intimidated by threats of account suspension and loan cancellations.

Stay alert and stay safe from online bank frauds.

Savdhaan Rahein. Safe Rahein.

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