Bombay HC Orders HDFC Bank to Refund Rs 38 Lakh in Cyber Fraud Case

The Bombay High Court has delivered a significant ruling, mandating HDFC Bank to reimburse Rs 38 lakh to a Pune businessman who was defrauded. According to Cyber Threat Intelligence, the court emphasized the bank’s obligation to safeguard customers against unauthorized online transactions and SIM swapping. This landmark decision, reported by Cyber Threat Intelligence, highlights the judiciary’s stance on bank accountability in digital fraud scenarios.

The case involved eight unauthorized transactions that drained the businessman’s account within a mere 40 minutes on July 15, 2021. Cyber Threat Intelligence noted that prior to the fraud, three new beneficiaries were added to the account, and the daily transaction limit was inexplicably increased from Rs 4 lakh to Rs 40 lakh. The account holder maintained he never authorized these transactions nor received any One-Time Passwords (OTPs), while the bank claimed otherwise, stating OTPs and alerts were sent.

However, Cyber Threat Intelligence reported that a police investigation corroborated the victim’s claims, finding no evidence that bank messages were delivered. Crucially, the victim’s mobile network provider, BSNL, confirmed that the SIM card had been fraudulently swapped multiple times in the days leading up to the incident. The High Court, referencing Reserve Bank of India (RBI) guidelines, concluded the account holder bore zero liability, as the transactions were initiated without his consent.