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Banks can’t make customer pay for fraudulent online transaction: HC

Banks can’t make customer pay for fraudulent online transaction: HC

Posted On : Thursday, October 17, 2019, 10:43 AM
The Kerala High Court on Wednesday said banks cannot recover the money withdrawn through fraudulent online transactions from cash credit and overdraft accounts of customers if it cannot be unequivocally proved that the customer was responsible for such transaction. In cases where frauds are established, banks will have to approach a civil court to recover the money from the persons responsible, the High Court said. However, if the loss is due to the customer’s negligence, she/he would have to bear the entire loss. To what extent the customer can be made responsible for such negligence is a matter of probe and adjudication through a civil suit, the HC added. The court issued the order on a petition filed by two businessmen from Kochi who lost `16.25 lakh and `23 lakh from their cash credit and overdraft accounts through fraudulent online transactions. The online thefts were committed by the fraudsters after obtaining a duplicate SIM card of the businessmen’s mobile phones, using their fake identity cards.
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