Procedure for recovering money from online fraud

Immediate Steps After Discovering Online Fraud

The moment you discover online fraud, time is critical. First, immediately report the unauthorized transaction to your bank. Call customer care and request them to block your account or card and freeze the pending transaction.

Second, call the national cyber crime helpline at 1930. Provide all transaction details including amount, date, time, reference number, and beneficiary account or UPI ID. The helpline coordinates with the bank to freeze the beneficiary account.

Simultaneously, file a formal online complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in). Select 'Report Cyber Crime' for financial fraud and upload all evidence.

Bank Procedures for Reversing Fraudulent Transactions

Under RBI guidelines, if you report fraud within 3 working days, your liability is zero and the bank must reverse the full transaction within 10 working days. This applies to unauthorized transactions where you have not acted negligently.

If reported between 4 to 7 working days, liability is limited to the transaction value or daily transfer limit, whichever is lower, provided no negligence. After 7 working days, liability is determined based on bank policy.

The bank investigates the transaction by reviewing logs, device details, and IP addresses. They determine whether the transaction was genuinely fraudulent or resulted from customer negligence, and coordinate with the beneficiary's bank.

Legal Options for Recovery

If the bank does not reverse the transaction, file a civil suit for recovery. You can sue the identified fraudster for recovery with damages for mental harassment. If the fraudster is unknown, file a suit against unknown persons.

A criminal complaint through the cyber cell can also lead to recovery. Upon conviction, the court may order compensation under Section 357 of CrPC. The police can trace the fraudster through digital evidence.

File a complaint with the Banking Ombudsman if the bank has been deficient. The Ombudsman can direct the bank to reverse the transaction. Vidhi Legal Services can assist with all legal proceedings.

Preventive Measures Against Online Fraud

Never share OTP, PIN, CVV, or bank details with anyone. Banks never ask for such information over phone, email, or SMS. Be cautious of unsolicited calls, messages, and emails claiming to be from banks or government agencies.

Use strong, unique passwords and enable two-factor authentication. Regularly monitor bank statements and transaction alerts. Install security software and avoid public Wi-Fi for financial transactions.

Shop only on reputed e-commerce platforms. Verify website authenticity before payment. Be wary of deals that seem too good to be true. Vidhi Legal Services offers guidance on cybersecurity best practices.

Frequently Asked Questions