Supreme Court tells banks to pay victims for cyber fraud losses if found negligent

NEW DELHI: If you lose money to a digital arrest scam because your bank did not stop it, your bank will now have to pay you back. A consumer does not have to worry about this. That is the clear and loud message from the Supreme Court.

In its October 29 order, a bench headed by Chief Justice Surya Kant held that financial institutions must be held accountable for digital arrest scams and other cyber frauds. Where an investigation establishes that fraud occurred due to a failure to exercise due diligence, banks must indemnify victims and pay compensation not less than the amount lost.