PIN fraud: SBI told to pay `50K

Victim had revealed PIN to caller

In a judgement that could open the doors for more grievances regarding cyber crimes related to banks, the Hyderabad District Consumer Disputes Redressal Forum-3 recently granted compensation of `50,000 to a bank customer who gave his PIN number to someone who called and asked for it and as a result had money deducted from his account.

The consumer forum refused to buy the argument of the State Bank of India that consumers ought to be careful about sharing such information and cannot blame the bank when their carelessness resulted in such a loss. The forum held that the bank had failed to take adequate security measures to protect the customer.

The complainants, K. Joji Reddy, and his wife K. Venkata Lakshmi of West Marredpally are joint holders of a Savings Bank Pension & Senior Citizen Account with SBI St John’s Road Branch in Secunderabad.

THE HYDERABD District Forum held that the bank had failed to take adequate security measures to protect the customer.

The Hyderabad District Consumer Disputes Redressal Forum-3 recently granted compensation of `50,000 to a bank customer who gave his PIN number to someone who called and asked for it and as a result had money deducted from his account.

K. Joji Reddy and his wife K. Venkata Lakshmi misplaced their ATM card and were issued a new card and new PIN number. On January 19, 2015, Ms Lakshmi received a phone call from a person who introduced himself as an employee of SBI debit card wing. She revealed the PIN number and other details as asked.

However, Mr Joji Reddy, suspecting foul play, immediately went to the SBI ATM at West Marredpally within two to three minutes of the call and changed the PIN number. Based on his son’s advice, he rushed back to the ATM to withdraw the balance amount but found that six withdrawals amounting to `35,500 had already been made by unknown persons.

They filed a complaint with the Marredpally police, but the address of the fraudulent caller could not be traced nor was there any CCTV camera at the scene of the ATMs in Noida and Mumbai from where it was ascertained the money had been withdrawn. Police closed the case as undetected.

The forum dismissed the case against the police but ordered SBI to pay compensation of `50,000 and `3,000 towards costs.