Procedure for filing a complaint for ATM fraud

Understanding ATM Fraud

ATM fraud involves the unauthorized use of debit or credit card information to withdraw cash or make transactions from a victim's bank account. Common methods include card skimming where devices capture card data, PIN theft through hidden cameras or shoulder surfing, and card trapping where cards are held by the ATM.

Skimming devices are placed on the card reader slot of ATMs to capture the magnetic stripe data. Hidden cameras or fake keypads are used to capture the PIN. Fraudsters then create cloned cards to withdraw money from the victim's account.

ATM fraud can also occur through 'Lebanese loop' where a device is inserted into the card slot to trap the card, and the fraudster offers to help, secretly retrieving the card and PIN. Other methods include cash trapping where the cash dispenser is blocked.

Immediate Steps After Discovering ATM Fraud

If you discover unauthorized withdrawals from your account, immediately contact your bank's customer care and report the fraudulent transactions. Request the bank to block your ATM card and issue a replacement. Note the date, time, and amount of each fraudulent transaction.

Call the cyber crime helpline at 1930 to report the fraud. The helpline can coordinate with the bank to freeze the beneficiary accounts if the fraudster used electronic transfers. File a complaint on the National Cyber Crime Reporting Portal at cybercrime.gov.in.

Visit the local police station to file an FIR. The FIR is essential for the bank's investigation and for claiming insurance or compensation. Provide the bank statement showing unauthorized transactions as evidence.

Bank Procedures and Liability

Under RBI guidelines, if you report unauthorized ATM transactions within 3 working days, your liability is zero and the bank must reverse the transactions within 10 working days. The bank is also responsible for ATM security and must ensure their ATMs are not compromised.

If reported between 4 to 7 working days, liability is limited to the transaction value, provided there is no negligence on your part. After 7 working days, liability is determined based on the bank's policy and the circumstances of the case.

The bank will investigate the transactions by reviewing ATM logs, CCTV footage, and transaction details. If ATM skimming is suspected, the bank must inspect the ATM for skimming devices. The bank may also coordinate with other banks where the withdrawals occurred.

Legal Remedies and Prevention

In addition to the bank's internal process, you can file a complaint with the Banking Ombudsman if the bank does not resolve your complaint. The Ombudsman can direct the bank to reverse the transaction and pay compensation for deficiency of service.

Victims can also file a civil suit against the bank for negligence in maintaining ATM security. If the ATM was tampered with, the bank may be liable for the loss. Criminal proceedings against the fraudsters can be pursued through the cyber cell.

Prevent ATM fraud by covering the keypad when entering your PIN, inspecting the ATM for unusual devices, avoiding ATMs in isolated areas, using ATMs inside bank branches, and regularly changing your PIN. Use chip-based cards which are more secure than magnetic stripe cards.

Frequently Asked Questions