Kerala High Court orders SBI to refund cyberfraud victim ₹3.73 lakh

The Kerala High Court has ordered State Bank of India to refund ₹3.73 lakh to a customer who was defrauded through a cybercrime transaction. The court's directive came after examining the victim's compliance with reporting requirements following the fraudulent activity.

In its judgment, the court observed that the complainant had fulfilled her obligations by intimating both the bank and law enforcement authorities about the unauthorized transaction within the stipulated timeframe. This prompt action formed the basis of the court's decision to hold the bank liable for the loss.

The ruling underscores the bank's responsibility to reimburse customers who report fraudulent transactions in a timely manner. By establishing that the victim had adhered to prescribed procedures, the court affirmed her entitlement to the refund despite the cybercriminal nature of the fraud.

The judgment carries implications for banking sector practices in handling cyberfraud cases, emphasizing the importance of customer reporting timelines in determining liability and reimbursement eligibility. Banks have been increasingly facing court directives to compensate fraud victims who meet reporting requirements within specified periods.