Bank fraud involving a 2-lakh credit card from Axis: My lessons from navigating complaint resolution through customer service and the Reserve Bank of India Ombudsman, determined to sustain this struggle
In May 2024, Sourav Ghosh became a victim of online banking fraud, losing more than just money—the incident eroded his trust in the banking system and took a toll on his mental wellbeing. His ordeal serves as a cautionary tale for individuals navigating the digital financial landscape, urging vigilance against potential fraud and emphasizing the need for systemic improvements.
Ghosh shares his painful experience in the hope of reaching others who may have been victimized and to mobilize legal assistance for those fighting similar battles.
Lessons Learned the Hard Way
The following practical insights could have spared Ghosh considerable financial loss, emotional distress, and squandered time:
- Never trust unsolicited phone calls purportedly from your bank. Verify such calls through official channels to prevent being duped by scammers.
- Rely on SMS alerts but also regularly check emails for transactions. SMS alerts may be delayed or missed, compromising your time-sensitive protection under banking regulations.
- Report unauthorized transactions promptly. Most protections under Reserve Bank of India (RBI) guidelines hinge on reporting within 24 hours.
- Exercise caution when filing cybercrime complaints online. If possible, lodge the complaint directly with Cybercrime instead of relying solely on the online portal; review acknowledgements thoroughly to correct errors detected.
- File an FIR without delay, even if you don't know the identity of the fraudster. Local police may refuse, but there are legal provisions to escalate non-registration of FIRs and hold police accountable.
A Year-Long Struggle for Justice
Ghosh's fight for justice has been marked by setbacks and bureaucratic hurdles:
May 11, 2024: A fraudster posing as a bank representative convinced Ghosh to divulge sensitive information, leading to a fraudulent transaction. Though he reacted swiftly, unbeknownst to him, the damage had already been done.
May 21, 2024: Ghosh discovered the transaction when his credit card bill arrived, only to find the bank automatically assuming liability for the unauthorized charge. This dismissive response, combined with their refusal to acknowledge missing SMS alerts, set the stage for a months-long struggle to clear his name and recoup his losses.
May 2024 to March 1, 2025: Ghosh's initial cybercrime complaint got stuck in limbo for nearly a year. It wasn't until technical errors with the online portal were addressed that an FIR could be registered.
May – Dec 2024: As Ghosh navigated various levels within his bank's grievance system, he was met with seemingly scripted responses and unanswered questions about transaction anomalies and merchant accountability.
July 2024: A complaint with the RBI Ombudsman yielded the same outcome: no deficiency found in the bank's service, prompting Ghosh to approach law enforcement.
March 1, 2025: Finally, an FIR was lodged, but despite submitting it to the RBI Ombudsman once again, Ghosh faced yet another closure of his case.
The System's Shortcomings
Throughout his ordeal, Ghosh noticed gaping holes in consumer protection and a lack of transparency from banking institutions and regulatory bodies:
- Payment gateways and merchants are not held accountable for fraudulent transactions. This leaves consumers, like Ghosh, bearing the financial aftermath.
- The digital transaction monitoring system, touted by banks, fails to detect highly unusual transactions, such as the one Ghosh experienced.
- ** banks' proactive measures for securing smaller, everyday transactions are often lacking when it comes to larger transactions.**
- Regulatory guidelines are not consistently enforced, resulting in delays, errors, and frustration for consumers trying to seek justice.
Moving Forward
Ghosh is seeking legal professionals or law students to help him fight this injustice. His hopes include:
- Connecting with other victims to exchange information and support one another
- Enlisting the help of volunteer legal professionals committed to the cause
- Gaining clear guidance on the most effective legal course of action, such as filing a case under the Consumer Protection Act or launching a Public Interest Litigation, to hold the bank and regulatory bodies accountable for negligence
Ghosh's determination to right this wrong serves as a reminder to all consumers to remain vigilant and aware in the digital banking landscape, and to advocate for systemic change that prioritizes consumer protection and accountability.
[3] Veracode (2019). The State of Software Security Volume 11. Retrieved March 27, 2023, from https://www.veracode.com/media/state-software-security-volume-11
[4] National Institute of Standards and Technology (NIST) (2019). Digital Identity Guidelines (SP 800-63-3). Retrieved March 27, 2023, from https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-63-3.pdf
[5] Symantec (2016). 10 Steps to Protect Yourself from Online Banking Fraud. Retrieved March 27, 2023, from https://www.symantec.com/content/en/us/enterprise/articles/security-center/10-steps-to-protect-yourself-from-online-banking-fraud/10-steps-to-protect-yourself-from-online-banking-fraud.pdf
- Ghosh encourages individuals to be wary of unexpected calls claiming to be from their bank, as these could potentially be scammers.
- He advises checking transaction emails in addition to SMS alerts, since delays or missed alerts could compromise your banking protections.
- Ghosh highlights the importance of prompt reporting of unauthorized transactions, as timely reporting is often crucial for protections under Reserve Bank of India (RBI) guidelines.
