From mint · Shivam Shukla · · 1m 10s
Kerala HC orders ₹3.73 lakh SBI refund after OTP scam
Kerala High Court forces SBI to refund ₹3.73 lakh to victim after OTP scam.
In brief
Kerala High Court forces SBI to refund ₹3.73 lakh to victim after OTP scam. Kerala High Court ordered SBI to refund ₹3.73 lakh to a retired college principal who shared an OTP with a fraudster posing as a bank official. Originally reported by mint.
Kerala High Court ruling
Kerala High Court directed SBI to refund ₹3.73 lakh to a retired college principal after unauthorised transaction on her debit card.
“Kerala High Court directed SBI to refund ₹3.73 lakh to a retired college principal who lost money after sharing an OTP with a fraudster posing as a bank official”
How the scam happened
Victim received SMS about debit card block, called official number, shared OTP for SBI Secure App registration.
“The victim received an SMS saying her debit card would soon be blocked. A call offering reactivation followed, from a number that looked official.”
Five key lessons
Never share OTPs with anyone, do not trust suspicious calls, report unauthorised transactions immediately, keep records of complaints, know RBI zero-liability rules.
“Banks and their officials never ask customers to disclose confidential information, such as OTPs, over calls or messages.”
RBI zero-liability rule
RBI zero-liability provision covers unauthorised transactions where neither bank nor customer is at fault, requiring notification within three working days.
“The Kerala High Court held that the case fell under the Reserve Bank of India’s ‘zero-liability’ provision for certain unauthorised transactions involving a third-party breach”
Reporting fraud
Contact bank immediately after suspicious transaction, block affected card, report to police and cybercrime authorities.
“Contact your bank or card issuer as soon as you notice or suspect a fraudulent transaction. Block the affected card or digital banking access”
What happens next
Victim receives ₹3.73 lakh refund from SBI after court order, but must report fraud to police and cyber authorities.
“The victim received an SMS saying her debit card would soon be blocked. A call offering reactivation followed, from a number that looked official.”
What it means
Kerala High Court ordered SBI to refund ₹3.73 lakh to a retired college principal who shared an OTP with a fraudster posing as a bank official.
