SC seeks compensation for digital fraud victims

The Supreme Court of India has called for greater accountability from banks in cases of digital fraud, emphasizing that victims should be compensated for their losses if an investigation establishes that a financial institution failed to meet its due diligence obligations. The bench, comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana, stated that compensation should cover at least the amount lost by victims in cases such as digital arrest scams, where lapses by banks are found to have contributed to the fraud.

The court also emphasized the need for preventive measures to detect and disrupt suspicious transactions, including temporarily suspending transactions that deviate from an account holder's usual pattern, automatically reporting suspicious activity, and conducting physical verification to establish the genuineness of transactions.

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