71-year-old Bengaluru man lost Rs 1.99 lakh via fake app; SBI told to refund

A Bengaluru man in his 70s has lost Rs 1.99 lakh due to a cyber fraud, according to the Karnataka High Court. The court ordered the State Bank of India (SBI) to refund the money and pay Rs 25,000 in compensation for unsatisfactory service. The high court upheld a decision made by the National Consumer Disputes Redressal Commission on April 15, which also directed SBI to refund the money and pay compensation.

The court stated that the bank cannot escape liability for the losses suffered by the customer due to unauthorized electronic transactions. The bank's C V Raman Nagar branch had challenged the consumer forum's order, arguing that the unauthorized transactions could not have occurred if the customer had not negligently shared OTPs.

However, the septuagenarian denied sharing any OTPs and claimed that a fraudster had hacked into the bank's software to cause the loss. The court emphasized the importance of banks ensuring the security of their online banking systems, as the money involved is public money and any failure could affect the economy and public trust.