Delhi Court Orders Bank to Refund Cyber Fraud Victim

The Delhi High Court ordered SBI to return Rs 2.6 lakh to a cyber fraud victim, citing glaring service deficiency. The petitioner lost the amount through phishing and vishing. SBI must additionally pay 9% interest and Rs 25,000 for costs. The court highlighted the bank's failure to act promptly despite knowing the accounts where the money went.

The Delhi High Court has mandated the State Bank of India (SBI) to return Rs 2.6 lakh to a 55-year-old victim of cyber fraud. The court also ordered SBI to pay a nine percent annual interest along with Rs 25,000 to cover legal costs.

Justice Dharmesh Sharma criticized SBI for its 'glaring service deficiency,' noting their response to the fraud report was 'lukewarm, defective, and not prompt.' The victim, targeted by phishing and vishing, lost substantial sums from his account despite not sharing OTPs or other sensitive information.

In its ruling, the court highlighted SBI's failure to exercise due care and act swiftly on the fraud notification, despite internal inquiries revealing where the stolen money was transferred. The court annulled the previous Banking Ombudsman order, holding SBI fully responsible for compensating the victim.

(With inputs from agencies.)