ATM frauds are rising each day. Fraudsters are using different tricks to steal money from citizen’s bank accounts. Fraudsters come up with various tricks which are very difficult to identify. Some of the tricks used by fraudsters to steal your money are card skimming, card trapping, ATM malware, card cloning, keypad jamming and so on.
Recently, as many as 50 people have been cheated of Lakhs of rupees after using a particular ATM at Gurugram. Victims got to know they have been duped, only after they received a text message saying that the money has been withdrawn from their bank accounts. They were surprised to read this message as they had their ATM cards with them.
Not just this case, there have been many incidents of ATM fraud all over the country. After getting to know about these frauds, the question which is running through everyone's mind is, can the lost money be recovered?
Victims can recover the money which is lost due to the fraudulent transaction by following some basic steps.
In case you get to know that the money has been withdrawn from your bank account without your knowledge, the first thing you must do is block your card. So, get your card blocked even before filing an FIR.
The user is not liable for the amount lost, if he is not aware of the fraudulent transaction. As per the notification issued by RBI on July 6th, 2017, it has revised the norms to limit the liabilities of a fraud victim.
a) Zero liability
A customer is entitled to zero liability in case fraudulent transactions occur in the following events:
1. Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer).
2. Third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction.
b) Limited Liability of a Customer
In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorized transaction to the bank. Any loss occurring after the reporting of the unauthorized transaction shall be borne by the bank.
If you are a victim of a fraudulent transaction, you must report it to the bank as soon as possible. In case you inform the bank within three days, you will get the entire amount as you will have zero liability.
You should file a First Information Report (FIR) at the nearest police station, in case you are a victim of fraudulent ATM transactions. It is very important to file FIR as it will stand as an official record of the incident.
If you are still using a magnetic plastic cash card, replace it with the chip card as the government has made it compulsory to use smart chip cards to avoid fraud. It is very difficult to tamper chip cards as it has a new layer of security.