Cyber Crime
SBI Ordered to Refund Rs 97 Lakh to Elderly Couple Over Online Fraud: Key Details Revealed
The National Consumer Disputes Redressal Commission (NCDRC) has ordered SBI to pay Rs 97.06 lakh to an elderly couple after a fraudulent transaction wiped out their fixed deposits. The commission criticized the bank for its failure to secure the account, noting that the fraud could have been prevented with better security protocols.
In a landmark judgment, the National Consumer Disputes Redressal Commission (NCDRC) has ordered the State Bank of India (SBI) to refund Rs 97.06 lakh to an elderly couple after their joint fixed deposit account was drained in a fraudulent online transaction. The case highlights the negligence on the part of the bank in securing its customers’ accounts, resulting in a massive loss of funds.
The couple, who had opened a joint fixed deposit account amounting to Rs 40 lakh in 2017, were devastated when they discovered that Rs 63 lakh was fraudulently withdrawn from their account by 2019. Upon visiting the bank to update their passbook, they found only Rs 3 lakh remaining. Shockingly, the fraudulent transactions were carried out using a phone number that was not linked to their registered account. Adding to the distress, the couple did not own a smartphone, as confessed by the fraudster.
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SBI initially held the couple responsible, accusing them of negligence for allegedly sharing their mobile banking details, such as PIN numbers, with unauthorized persons. According to SBI’s lawyers, the transactions were conducted by individuals in close association with the couple.
The couple, however, maintained that the transactions were unauthorized and lodged a formal complaint with the police, leading to the registration of an FIR on April 9, 2019.
In its ruling, the NCDRC criticized SBI for failing to ensure the safety of its customers’ accounts and ordered the bank to compensate the couple. The total amount of Rs 97.06 lakh included the principal amount, 9% annual interest, and Rs 3.20 lakh towards compensation and legal expenses. The commission also pointed out that had SBI updated its security protocols, this incident could have been avoided.
The judgment also upheld a previous ruling by the Telangana State Consumer Disputes Redressal Commission, further strengthening the couple’s case.
Following this incident, SBI reformed its Internet banking services, mandating the physical presence of customers to activate online banking. This move aims to prevent similar frauds, particularly for customers who are not technologically proficient.
This case brings to light the growing risks associated with online banking and the need for financial institutions to implement stronger security measures. It also serves as a reminder for customers to remain vigilant in safeguarding their banking credentials and sensitive information.
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