Has your bank account ever been hacked and money stolen? If yes...then this is a nightmare. You rush to the bank and inform them of your loss. Someone has withdrawn INR 15,000 from your bank account. You are a victim of online fraud.
Yes, you have lost money but your problems are just beginning. The onus is on you to prove to the bank that the mistake is not yours. You have not carelessly shared details of your bank account or ATM Card with anyone...Yet, your money has been stolen. If you are lucky, you will get your money back in a couple of months, without interest. If you are unlucky, who knows.
So, if you are a victim of online fraud is there any way you can get your money back without any hassles? Let's find out. Want to know more on loans and credit cards? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
RBI has heard your prayers and come out with a new set of guidelines. Today, if you are a victim of online fraud and report the unauthorized / fraudulent transaction to your bank within a stipulated time, the bank will repay you the entire amount you have lost.
1. Lost money through online fraud: Inform your bank immediately
Lost money through online fraud? You better inform your bank immediately. Earlier, the onus was on you to prove to the bank that you had not shared your bank account/ card details with anyone. Now, banks have to prove that you were careless while using the online banking facilities.
If you (customer) inform your bank that you have been a victim of online fraud, within 3 working days after receiving the communication, the bank has to make good the entire loss to you.
If you lose money because of a fraudulent online transaction and the bank is at fault because of deficiency/negligence, the bank will pay for the entire loss, whether you report it or not. A digital transaction has to go through intermediaries like payer bank, payee bank, payment gateway and so on.
The transaction is encrypted and according to rules, no data must be stored with intermediaries, but only transferred. Still, if you are a victim of online fraud, the bank is at fault and will bear the loss.
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3. Inform bank if online fraud is due to third-party breach
Remember the malware attacks on Hitachi Payment Services affecting nearly 3.2 million debit cards? This third party breach affected the customers of reputed banks like HDFC Bank, SBI, ICICI Bank, Yes Bank and Axis Bank. If you lose money because of a third-party breach and you inform your bank that you have been a victim of online fraud, within 3 working days after receiving the communication, the bank has to make good the entire loss to you.
What happens if neither you nor the bank are responsible for the online fraud and the fault lies in the system? You inform the bank within 3 days and the entire amount is paid to you. If you inform the bank within 4 or 7 days, your liability will be limited to the transaction value or INR 10,000 whichever is less.
The limit of INR 10,000 applies to SB accounts, credit cards with a limit of up to INR 5 Lakhs and current accounts with annual average balance limit up to Rs 25 lakhs.
Yes, you may be able to get your money back even if you are a victim of online fraud...But, prevention is better than cure. Do not share your banking details with anyone. Keep checking bank accounts regularly to detect any suspicious transactions. Do not use public computers to login for banking transactions and use a licensed anti-virus software. Be Wise, Get Rich.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
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