In Kerala, ₹3.28 lakh was withdrawn from an SBI customer's fixed deposit (FD) through a fraudulent KYC link. The Commission ordered the bank to return the remaining ₹99,874, pay ₹25,000 in compensation, and ₹10,000 in litigation costs. The payment must be made within 45 days.
Couple loses sleep over fake KYC link, SBI to pay Rs 1.35 lakh to customer
A message purporting to update your KYC could cost you your savings. A similar incident occurred in Kerala, where a couple allegedly had lakhs of rupees withdrawn from their bank account through a fraudulent link. The Consumer Commission has now directed the State Bank of India to refund the remaining amount and provide compensation.
This case dates back to 2023. A couple from Kerala had a savings account with the State Bank of India. The husband had also made a fixed deposit (FD) of Rs 10 lakh with the bank for three months. On January 7, 2023, when they tried to pay their credit card bill through the bank's app, the payment failed.
Subsequently, they received a message regarding their account being blocked and needing to update their KYC. According to her husband, they attempted to fill in their details using the link provided in the message. Meanwhile, approximately ₹3.28 lakh was withdrawn from their FD in four separate transactions.
The bank returned the money, but the amount remained.
The couple stated that they immediately reported the unauthorized withdrawal to the bank. Following the intervention of the bank's internal banking ombudsman, approximately ₹2.24 lakh was refunded, but the remaining ₹99,874 remained unrefunded. The couple subsequently filed a complaint with the District Consumer Disputes Redressal Commission in Pathanamthitta. They alleged that if the bank's monitoring system had been effective, such unauthorized withdrawals could have been prevented.
The bank accused the customer of negligence
During the hearing, SBI stated that the bank does not require customers to update their KYC through the app. The bank argued that the customer allegedly shared their information and OTP via a fraudulent link, allowing fraudsters to conduct transactions. However, the Commission found that the bank failed to provide sufficient evidence to support its claim. According to the Commission, simply accusing the customer of sharing information cannot absolve the bank of its responsibility.
SBI will have to pay compensation within 45 days
The District Consumer Commission ordered the bank to refund the remaining amount of ₹99,874. Additionally, the couple was ordered to pay ₹25,000 as compensation for mental harassment and ₹10,000 as litigation expenses. The bank must pay a total of approximately ₹1.35 lakh within 45 days.
What is the important lesson for customers?
This case highlights the risk of trusting unknown links posing as KYC updates. Customers should verify their information on the bank's official website or app. Do not share OTPs, PINs, or banking passwords with anyone. In case of any suspicious transaction, immediately notify the bank and file a complaint with the cybercrime helpline 1930.
