Victim Of Bank Fraud & Lost Your Money? Banks Will Not Compensate As Per Gujarat Consumer Court

According to a consumer court in Gujarat, whether you have been a victim of bank fraud or someone has scammed money out of your bank account, the bank is not liable to compensate you for your loss. Several types of frauds victimize consumers. Consumer fraud occurs when an individual experiences a financial loss as a result of misleading, unfair, or false business practices. Identity hackers steal your details, assume your identity, open credit cards, bank accounts, and make transactions using your credit card or bank account. When someone steals your credit or debit card details and uses it to make transactions or make deals to lower your credit card interest rate, this is known as credit or debit card fraud. COVID-19 scams are a new form of fraud that preys on your fear or need for money!

The Consumer Financial Protection Bureau (CFPB) is a government agency that protects consumers from financial fraud and scams by making sure banks and financial companies treat consumers fairly.

“Scammers are constantly finding new ways to steal your money. You can protect yourself by knowing what to look out for.” -the CFPB. 

According to the Reserve Bank of India (RBI), if a transaction is affected by a third-party violation — caused by anyone other than the bank or the customer — and the customer notifies the bank within three working days, the customer is not liable in any way.

 The National Consumer Disputes Redress Commission (NCDRC) previously held that banks are liable to compensate their customers in the event of fraudulent transactions. The bank cannot, according to the court, depend on arbitrary terms and conditions to “wriggle out of its liability.”

A victim of fraud who got duped of Rs 41,500 !

The Consumer Dispute Redressal Commission in Amreli denied compensation of a victim of fraud who got duped of Rs 41,500. According to the Times of India, the court believes that the fraud occurred due to the individual’s negligence, alleviating any responsibility on the art of the bank.

 On April 2, 2018, someone impersonating a State Bank of India (SBI) manager named Kurji Javia, a retired teacher who now practices law. The con artist demanded Javia’s ATM card details, which he provided under the impression that he was communicating with a high-ranking official. When a pension of 39,358 was deposited in Javia’s account the next day, another pension of 41,500 was withheld at the same time. He desperately called the bank after discovering the transactions but received no response. The money was later discovered to have been used for online shopping by the fraudsters. 

He argues that if the bank had acted more quickly, the loss might have been avoided. On this basis, he sued SBI for the money he lost as well as a monetary settlement of 30,000 for assault.

Consumer Court’s Verdict

The consumer court stated that banks provide enough notice to customers not to share their ATM card or bank account information with others.

Banks not only issue advisories, post instructions on the bulletin board, and splatter cautionary messages through social media, but they also remind customers that no bank employee would ever contact them asking for their ATM card details.

According to the court, Javia ignored the banks’ advises that alarm the users to not share bank account information or ATM card information. Javia did not meet any of the bank’s guidelines for secure transactions, indicating that the banks were not negligent.