Placeholder canvas
Igniting Ideas For impact

Embarking on a transformative journey through six chapters, we traverse India's landscape, exploring pioneering startups and their revolutionary...

4 months

ATM Fraud: How to Recover Money Withdrawn From Account Without Consent

ATM Fraud: How to Recover Money Withdrawn From Account Without Consent

First and foremost, contact your bank and block your debit card immediately.

Imagine getting an SMS from your bank informing you of a withdrawal of Rs 15,000 from your account. You immediately reach for your wallet to check if your debit card is with you.

It is. Relief!

Then, you read the SMS again and realise that the ATM from where the money has been withdrawn is not even in the city you reside in. You panic and call the bank helpline number only to be put on hold, during which time you have racked your brains about where you used the debit card last.

Sound familiar? This is what happens during an ATM fraud.

According to RBI data, Maharashtra reported 233 cases of ATM fraud in 2018-2019, the highest in the country. The data further revealed that Delhi grabbed the second spot with 179 cases, followed by Tamil Nadu’s 147 cases.

So what should you do in such a scenario?

Before we look at the legal recourse, let us understand the steps that must be taken immediately after your money has been withdrawn from an ATM without your consent:

  • When you open an account, always opt for the SMS service to stay alerted of all transactions.
  • First and foremost, contact your bank and block your debit card immediately.
  • File a First Information Report (FIR) – once you have blocked your card, lodge an FIR at the nearest police station. This is an important step that must not be missed.
  • If you find that the card details have been used for an online transaction, then run a good anti-virus software and do not store your passwords in any computer/device that can be accessed by others.
  • Also ensure that you change the PIN and other security details of your card periodically.

Reserve Bank of India’s standpoint

RBI. Photo Source: Wikimedia Commons

To protect the rights of the customers, the RBI vide a notification dated July 6, 2017, revised the norms to limit the liabilities of a fraud victim.

If you are the victim of a fraudulent online transaction, report the same to the concerned bank within three days without fail.
Once done, the amount will be credited into your account within 10 working days.

There are various kinds of liabilities and customers must be aware of them all.

Zero Liability of customer

If the fraud takes place because of the bank’s negligence, then the customer is obviously not liable. These may occur when there is some technical glitch at the bank’s end and the details of the customers are compromised in some way.

This will also apply to cases where there is a third party breach, meaning that the deficiency lies neither with the bank nor the customer but somewhere within the system. In such cases, the customer must mandatorily inform the bank within three days of the occurrence of a breach.

Limited Liability of customer

If the loss has arisen due to the negligence of the customer, then the loss will be borne by the customer.
However, once the customer intimates the bank of the fraud and the fraud continues even after that, then it is the liability of the bank.

Also Read: Banks Cannot Charge You For These ATM Transactions: RBI Rules You Need to Know!

In case of fraud or an unauthorised transaction, remember that the burden of proving customer liability lies on the bank–meaning that the bank will have to prove that there was negligence on your part, and you are innocent until proven guilty.

(Edited by Shruti Singhal)

Like this story? Or have something to share?
Write to us:
Connect with us on Facebook and Twitter.

We bring stories straight from the heart of India, to inspire millions and create a wave of impact. Our positive movement is growing bigger everyday, and we would love for you to join it.

Please contribute whatever you can, every little penny helps our team in bringing you more stories that support dreams and spread hope.

Support the biggest positivity movement section image Support the biggest positivity movement section image

This story made me

  • feel inspired icon
  • more aware icon
  • better informative icon
  • do something icon

Tell Us More

Sign in to get free benefits
  • Get positive stories daily on email
  • Join our community of positive ambassadors
  • Become a part of the positive movement