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What to do if you are a victim of bank fraud?

IamCheated.com Research Team | September 20, 2019  12:45:am

What to do if you are a victim of bank fraud?

As the number of people having bank account rises, bank frauds too increase. When compared to last year, the number of frauds reported by banks has increased by 15%. So, it is very important to be careful while carrying out any banking transactions. Bank frauds consist of fraud-related to advances, card, internet, and deposits.

Fraudsters use various tricks to carry out banking frauds. Some of the common tricks used by fraudsters are vishing, phishing, card skimming, identity theft, malware or spyware, SIM swap fraud, credential stuffing and many more. These tricks are employed by fraudsters with the main intention of stealing personal banking information of people. Once the personal banking information is stolen it is used to carry out a fraudulent transaction and wipe out money from bank accounts.

In this blog, we will discuss how to avoid such frauds and what to do in case you fall victim to bank fraud even after your best efforts.

See Also: How to lock SBI Net banking access to prevent frauds?

How to avoid bank fraud?

  • To stay safe from bank frauds, you must never share your personal banking details such as card details, PIN and OTP with anyone.
  • You have to be careful while swiping your card at ATM or POS machines. Do not insert your card in a machine which looks different. Never withdraw cash from ATMs which are located in isolated places.
  • You should use banking websites and apps only on the computer and phone which belongs to you. Avoid using a public computer and wi-fi to carry out any banking transactions.
  • Your net banking password should be very complex and unique and develop the habit of changing your password regularly.
  • Subscribe to SMS and email alerts sent by banks and make sure to provide the mobile number and email Id which is in working.

Who is held responsible in the case of bank fraud?

  • If the fraud has happened due to bank's negligence

If the fraud has taken place due to the deficiency on the part of the bank, the liability of the customer is zero and the bank is held responsible for the fraud. This is irrespective of whether the transaction is reported by the customer or not.

  • If the fraud has taken place due to customers negligence

If the fraud has happened due to the negligence of the customer, the entire loss will be borne by the customer until it is reported to the bank. This is why customers should not share any personal banking details with anyone.

  • If the deficiency lies neither with the bank nor the customer

There are times where fraudulent transactions take place due to a fault in the system and not because of the customer's or bank's fault. In such cases, customer’s liability is zero, if it is notified to the bank within 3 working days of receiving the bank’s communication regarding the fraudulent transaction.

If the fraud is reported between 4-7 working days, then the maximum liability ranges from Rs 5,000 to Rs 25,000, depending on the account type.

What to do if you are a victim of bank fraud?

If you are a victim of bank fraud, the first thing you have to do is report to the bank and get your account blocked as soon as possible.  After reporting to the bank, you have to file a complaint at the nearest police station.  

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