Consumer Commission Orders Bank To Repay After Woman Loses Rs 6.93 Lakh In Online Fraud

A woman lost Rs 6.93 lakh after falling victim to a fake FedEx parcel scam, where fraudsters allegedly threatened her with legal action over a fabricated parcel claim. After taking the matter to the consumer forum, she has received relief, with the commission directing the bank to refund the remaining amount.

The District Consumer Disputes Redressal Commission, Nagpur, examined whether the bank had taken adequate measures after the disputed funds were transferred to an account that showed unusual transaction patterns.

How The Fraud Took Place

The incident took place in January 2023 when the woman received a call from a person claiming to be linked with FedEx customer service. The caller allegedly told her that an international parcel booked in her name contained illegal items and claimed that her identity had been misused.

After being threatened with possible legal action, the woman transferred a total of Rs 6,93,437.50 through multiple transactions to an ICICI Bank account on the pretext of investigation and processing charges.

She later reported the matter to ICICI Bank, the National Cyber Crime Portal and the police.

The bank initially provided temporary credit for the disputed transactions. However, the amount was later reversed after ICICI Bank informed her that the transfers were completed through OTP authentication using her registered mobile number.

The woman then approached the banking ombudsman which ordered ICICI Bank to credit around Rs 1.75 lakh, accounting for nearly 25 per cent of the disputed amount. She later moved the consumer commission seeking relief for the remaining loss, alleging that the bank had failed to take adequate preventive measures despite suspicious activity linked to the beneficiary account, according to a report in Economic Times.

ICICI Bank argued that the transactions were authorised by the customer and that the loss occurred because she transferred money without proper verification. The bank maintained that it could not be held responsible for transactions completed after OTP authentication.

Why Commission Held Bank Responsible

The court observed that the case involved deficiency in banking service and negligence while handling suspicious transactions. The consumer commission noted that the account receiving the money was also maintained with ICICI Bank. It examined the transaction pattern of the beneficiary account and found unusual activity.

According to the report, the beneficiary account saw transactions amounting to around Rs 2.84 crore in January 2023 even having limited activity during other periods. The commission observed that such inconsistent transactions should have prompted monitoring and necessary action.

The commission said that since both the sender and beneficiary accounts were maintained with the same bank, the transactions could appear genuine to the customer. It held that the bank had a responsibility to monitor suspicious accounts and take appropriate measures.

The commission directed ICICI Bank to refund the remaining 75 per cent of the disputed amount, which comes to around Rs 5.18 lakh, along with 9 per cent interest. It also ordered the bank to pay Rs 35,000 as compensation for mental agony and complaint-related costs.