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Lost Money in Cyber Fraud? This Man Got Back Over ₹94,000—Here’s How You Can Too!

Written by: Team Angel OneUpdated on: Mar 20, 2025, 3:00 PM IST
An SBI customer lost ₹94,204.80 in a cyber fraud linked to a Louis Philippe refund. After legal battles from the High Court to the Supreme Court, justice prevailed.
Lost Money in Cyber Fraud? This Man Got Back Over ₹94,000—Here’s How You Can Too!
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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.

The Cyber Fraud: A Data Breach and a Fake Customer Care Call

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.

The Fight for Justice: A Lone Battle Against SBI

Determined to reclaim his money, the victim took several steps:

  • Immediately reported the fraud to SBI.
  • Filed an FIR at Jalukbari Police Station.
  • Lodged 3 complaints with the Assam Police Cybercrime Cell (CID).
  • Reported the fraud to the National Cyber Crime Reporting Portal.

With no resolution, he escalated the matter legally, leading to a landmark court battle.

1. RBI Banking Ombudsman Rejects the Claim

Despite clear evidence of cyber fraud, the RBI Banking Ombudsman rejected his claim, siding with SBI.

2. Gauhati High Court Rules in His Favour

The Gauhati High Court ruled that SBI had failed in its duty to protect the customer and ordered a full refund.

3. SBI Appeals and Loses Again

SBI challenged the ruling but lost. The High Court reaffirmed that SBI should recover the stolen money from the fraudster, not the victim.

4. Supreme Court Upholds Justice

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.

SBI’s Defence: Blaming Google Pay

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.

A Landmark Verdict: A Win for Cyber Fraud Victims

The Supreme Court’s ruling sets an important precedent:

  • Banks must take responsibility for customer security.
  • Victims should not be blamed for falling prey to sophisticated scams.
  • Financial institutions cannot deny liability based on third-party payment methods.

This case is a significant win for banking accountability and consumer protection.

Lessons from the Case: Protecting Yourself from Cyber Fraud

This case serves as a wake-up call for all online shoppers and digital banking users. Here’s how you can safeguard yourself:

  1. Never install unknown apps at the request of customer care representatives.
  2. Verify customer service numbers only from official brand websites.
  3. Avoid sharing personal banking details over calls unless absolutely necessary.
  4. Report fraud immediately to your bank and cybercrime authorities.
  5. Monitor your transactions closely and set up alerts for suspicious activity.

Final Thoughts: A Victory Against Banking Negligence

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.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 20, 2025, 3:00 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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