4 months, 1 week ago

Customer Did Not Share OTP But SBI's "Most Hyped" 2-Factor Authentication Failed, Resulting In Cyber Fraud: Delhi HC Orders Compensation

In a case of cyber fraud where a man lost money from his State Bank of India account after clicking a link in an SMS, the Delhi High Court directed the SBI to compensate the customer for the lost amount, noting a “glaring service deficiency” on the part of the bank. The SBI relied on a RBI Circular “Customer Protection– Limiting Liability of Customers in Unauthorized Electronic Banking Transactions” dated 06.07.2017. It is merely upon clicking on a link received on his mobile phone after he was duped into believing that his SMS services would be blocked, that the said unauthorized transactions took place.” The Court opined that the petitioner was a “victim of cyber fraud” and not 'negligent' in any manner under the context of civil or criminal law, It stated that negligence implies duty of care that would be expected from a person of ordinary prudence. Deficiency In Services By SBI The Court referred to the RBI's Circular “Master Direction on Digital Payment Security Controls” dated 18.02.2021, which lays down guidelines for governance and management of security risks.

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Security Fraud Court Cyber Fraud Complaint Rbi Customer Transactions Sbi Link Petitioner Circular Otp Otps Unauthorized Unauthorized Transactions Most Hyped
Absence Of Transaction Alert SMS, Chandigarh District Commission Holds SBI Card Liable For Failure To Avoid Unauthorized Transactions
11 months, 2 weeks ago

Absence Of Transaction Alert SMS, Chandigarh District Commission Holds SBI Card Liable For Failure To Avoid Unauthorized Transactions

Live Law
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Delhi Police busts pan-India racket of KYC frauds, 23 held for duping people using fake SBI app
3 years ago

Delhi Police busts pan-India racket of KYC frauds, 23 held for duping people using fake SBI app

India Today
India

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