SBI cyber fraud: Kerala HC orders ₹3.73 lakh refund. Can you get a refund after sharing an OTP?

Kerala High Court directed SBI to refund ₹3.73 lakh to a retired college principal who lost money after sharing an OTP with a fraudster posing as a bank official. Here is how the scam worked, five lessons every bank customer should take from the case, and what the RBI’s zero-liability rule says.

Cyber fraudsters often impersonate bank, ED, RBI and police officials to trick customers into sharing confidential information such as OTPs, CVVs and ATM PINs. They use fear and urgency to pressure victims, then use the details to carry out unauthorised transactions, often causing serious financial loss.

In a recent case, the Kerala High Court directed the State Bank of India (SBI) to refund ₹3.73 lakh to a retired college principal after an unauthorised transaction was made on her debit card. The ruling highlights the importance of promptly reporting fraud, staying vigilant, and understanding your rights as a customer. The case was reported by The Indian Express.

How did the cyber fraud take place?

According to the report, the victim received an SMS saying her debit card would soon be blocked. A call offering reactivation followed, from a number that looked official. Trusting the caller, she shared an OTP for the “registration” of the purported SBI Secure App, after which ₹3.73 lakh was debited from her account.