Who would have thought that returning a ₹4,000 blazer from Louis Philippe could lead to an entire bank account being wiped out? This is exactly what happened to a man from Assam, who simply wanted his refund. Instead, he became a victim of cyber fraud, losing ₹94,204.80 from his State Bank of India (SBI) account.
Rather than supporting the victim, SBI refused to take responsibility, failed to lodge a cyber fraud complaint, and dismissed his pleas. Instead of initiating a chargeback request, the bank blamed the victim for using Google Pay, calling it a third-party app that they do not officially endorse.
However, after a prolonged legal battle, the victim secured a historic Supreme Court ruling that forced SBI to refund the stolen amount.
According to a news report, it was revealed that the victim’s ordeal began in 2021 when Louis Philippe’s website was hacked. The personal details of several customers, including the Assam resident, were leaked and sold on the dark web.
A fraudster posing as a customer care representative contacted the victim, claiming the refund could only be processed after installing a specific app. Once installed, the app granted remote access to the fraudster, who swiftly drained the victim’s SBI savings account.
Within a few hours, his entire balance was gone. The fraudster even used sophisticated layering techniques to make tracking the money trail difficult.
Determined to reclaim his money, the victim took several steps:
With no resolution, he escalated the matter legally, leading to a landmark court battle.
Despite clear evidence of cyber fraud, the RBI Banking Ombudsman rejected his claim, siding with SBI.
The Gauhati High Court ruled that SBI had failed in its duty to protect the customer and ordered a full refund.
SBI challenged the ruling but lost. The High Court reaffirmed that SBI should recover the stolen money from the fraudster, not the victim.
Refusing to accept the ruling, SBI escalated the matter to the Supreme Court. However, the apex court upheld the High Court’s verdict, ordering SBI to refund the entire amount to the victim.
In court, SBI argued that since the fraudulent transactions occurred via Google Pay, the bank was not liable. “As Google Pay is a third-party app, SBI is not responsible for any transactions made using it. The bank does not recommend third-party apps for online transactions.”
The Supreme Court rejected this defence, ruling that banks are responsible for securing their customers’ funds, regardless of the platform used.
The Supreme Court’s ruling sets an important precedent:
This case is a significant win for banking accountability and consumer protection.
This case serves as a wake-up call for all online shoppers and digital banking users. Here’s how you can safeguard yourself:
This David vs. Goliath battle highlights the need for banks to prioritise customer security over profit-driven legal defences. It took relentless effort, three levels of judiciary intervention, and public scrutiny for SBI to finally be held accountable.
If a common man from Assam can take on India’s largest public sector bank and win, it gives hope to thousands of cyber fraud victims across the country.
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Published on: Mar 20, 2025, 3:00 PM IST
Team Angel One
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