Responsibility and remedies for ATM frauds: The responsibilities and remedies for ATM frauds are below defined by the Disputes Settlement Trust on the basis of the report published in Times of India on 3rd November 2013 with its heading “Frauds tweaked ATM keypads to fool users, held”. The investigation reveals that:-

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HOW THE GANGS CHEAT

(1) Cheats insert chip under blank keys located at the bottom of key pad; they use adhesives to keep keys suppressed

(2) One of the cheat waits inside the ATM room for victim

(3) As the user swipes the ATM card and feeds his PIN, the screen goes blank

(4) The cheat inside creates commotion and asks user to hurry

(5) When user leaves, cheats take out chip and complete the transaction

(6) If the ATM demands PIN again, cheats feed it , as one of them has already seen the user key it in.

LEGAL ANGLE OF CHEATING THE BANK CLIENT: The Disputes Settlement Trust has summarized the responsibilities and remedies for such frauds as follows:-

(1) The Bank provided the machine for this operation. Therefore it is prime responsibility of the Bank to ensure that no one is able to do such activity. The manufacturer of the machine is responsible to provide the machines which are not vulnerable to any such attempts. It is the responsibility of the Bank to ensure warranty of machine, safety and security of machine provided to the customers of the Bank. The Bank is responsible to cover their risk with any insurance company against pilferage, tempering of machine, tempering of security of the machine.

(2) The Bank is responsible to ensure that any person other than the customer is not present in the ATM room or any other person is not able to see the customer keying in the password. Bank can insure by keeping trained Security Guards. Bank may increase the number of Guards or a Supervisor to ensure a bunch of ATM machines. e.g. if 3 or 4 ATM machines are provided at one place additional security person trained in such matters may be deployed. The Bank has deployed or not deployed such person, it is totally the responsibility of the Bank.

(3) It is the responsibility of the Bank to ensure more number of ATM machines, where the customers do not get into commotion due to long waiting line to withdraw cash from the ATM machines and therefore all are in a hurry to get to the ATM. If a supervisor is deployed and made responsible the commotion as well as another person seeing a customer keying in PIN can not occur if 2nd person is not allowed until the person inside, do not come out from the ATM room.

THE POSITION OF BANK –  IN LAW

The Bank is Services Provider to its customer under the Consumer Protection Act

THE POSITION OF CUSTOMER – IN LAW

The Customer is a Consumer of the services provided by Bank under the Consumer Protection Act

THE POSITION OF TRANSACTION

The customer goes to the ATM to withdraw Cash in good faith thinking safety & security by Bank. The fraud occurs while transacting. The customer, in good faith has performed his part by inserting the ATM card in the machine and keying in the PIN. The Bank has not performed his part of handing over the money to its customer. As far as the customer is concerned, the Bank in connivance with the machine or some one operating, repairing, supervising the machine (Bank) has not given him the money.

RESPONSIBILITY TO PAY & COMPENSATE

The responsibility is of the Bank and remedies to repair the defects of ATM due to frauds is also of the Banks. The Bank is responsible to provide the money & also compensate for any other grievance, indirect loss of reputation of the customer as his faith in the Bank has been shaken.

REMEDIES FOR THE CUSTOMER

The customer in such a case should immediately contact the Bank customer service and inform them and take note of the complaint number, note the time & date and name of the customer service representative of the Bank.

Thereafter, it is prerogative of the customer to file a FIR/Police Complaint by himself or through an Advocate with the local police under whose jurisdiction the fraud has taken place.

Any person aggrieved by such fraud is provided FREE ADVICE by us, if you write below this page.

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20 Comments

  • Akarar Ahamad says:

    Hi sir, my name is akarar ahamad. i read your blog about atm fraund published in times of indian title by frauds tweadked atm key pad to fool users, held. I want to tell you same fraud happen with me 30th of december in indusind atm . I am customer of hdfc banc i reported on time in customercare and lodged fir on time. I am calling visiting to many hdfc officer but not getting any response. they are giving me just time to say wait for video footage. it has been already comleted 2 month. I need your help if you can immediately.

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  • Gurjeet Kapoor says:

    I got cheated at PNB ATM, Govind Puri, New Delhi today, i.e. 4-Aug-2015 without guard, same thing happened, machine was not accepting PIN and when I left, got the message of Rs. 15,000/- withdrawal from my account, I immediately rushed back and filed a police complaint and inform the customer service of PNB and obtained the complaint no. Now what should I do ? . Please help.

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  • Kashyap Parekh says:

    There has been 3 transactions of ATM cash withdrawal from my credit card on 8/12/2015. The amount has is high per my standards. I have filed an FIR with local police and also registered a dispute for the transactions with the bank. What would be the further process be? How much will be my liability?

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  • Tejinder Pal Singh says:

    I have an account with Axis bank. On 26/11/15 i attempted to withdraw cash at Dev Nagar New Delhi Axis Bank ATM at about 9.30 PM There are two ATMs in the chamber and there was no security guard deployed there. I attempted to withdraw cash at ATM no. 2 as ATM no. 1 was being used by some person. I swiped my card and entered PIN and then the ATM got hanged. I pressed cancelled button twice thrice and shifted to ATM no. 1 which has now got vacated now. I then withdrawn cash Rs. 500 and came out of the chamber. When i reached home, there was another withdrawal transaction of Rs. 20000 done at ATM no. 2 (which was hanged at that time) I lodged police complaint next day and intimated bank. More than one month has lapsed but the bank is not done anything. Kindly let me know what i should now do ? I want the bank to compensate me because the bank knowingly that these kind of frauds are common in nearby area, they did not deploy any security guard. The bank manager told me that due to these kind of fraudulent withdrawals at nearby PNB atm, the bank has now shifted that ATM to another location. It is therefore, the complete negligence on the part of bank that they knowingly all things did not take security measures to protect the ATM.

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  • Suraj Pillai says:

    Hi sir,
    My atm card was been used from another country last night and debited rs15000 and as soon as i recived the msg of transaction being done i contacted bank customer service and deactivated my card and recived a complaint number also from them. Sir now can u please let me know further wht should i do?

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  • Soumi Guha Thakurta says:

    Hello,

    I am Soumi Guha Thakurta. That on the night at about 11-37pm and 12.09am of 12th March 2016 and 13th March 2016 respectively, I received an sms from UCO BANK, that Rs. 20,000/-, Rs. 5,000/-, Rs. 20,000/- and Rs. 5,000/- (a total of Rs. 50,000/-) was withdrawn from my Account using my Debit Card. All these sms/withdrawal was in between 11.39pm- 12.09am (i.e. 12th March 2016 – 13th March 2016) from an UCO Bank ATM with ATM ID- DA107301 which I searched on ‘Google’ and found out that it was somewhere near Jawaharlal Nehru Road, Calcutta.
    It is Pertinent to mention that at that point of time I was at home and the ATM Card with me only and no one else. It is a serious case of fraud or any other card related crime which I anticipate. Also pertinent to mention that my last use of my ATM card was at petrol Pump wherein I transacted for Rs. 1000/- and thereafter there I did not use my card in any occasions whatsoever.
    I have already lodged an FIR/GD with the Kasba Police Station to look and to investigate into the matter and already wrote email to the UCO Bank at the email id provided in the website.

    Will the banking Ombudsman give me any relief?
    Or Will I have to go to Consumer Forum?

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  • Sanjeev Tripathi says:

    After greetings.

    I Sanjeev Tripathi, maintain an NRE account with SBI main branch Gorakhpur, I left my ATM card with my wife back there in India for any emergencies. No SMS service/ Net banking is activated on this account. This ATM card is not used by us frequently. But with my permission, on 16 March 2016, 17 March 2016 & 19 March 2016 she withdrawn some money from this account to cover-up some funds shortage to buy a property.

    Then on 29 March 2016, through mini-statement, she came to know five unknown transactions dated 21 March 2016. I got it cross checked with the bank next day & found it suspicious. I wrote an e-mail to bank & Local Police authorities regarding this. FIR has been registered at local police station later on 15 April 2016.

    Later, bank informed us that the Fraudulent transactions were made in Lucknow using my card. But It was a shocking information because neither my card was lost not carried to Lucknow during past months & still we are having the blocked card. Also we’d not disclosed any Card/ Account related information to any unknown person. Later on 9th May, 2016 bank called us to look into the CCTV footage. But the fraudster was completely unknown to all of us.

    I informed this to bank official & police authorities through e-mail. Since then, no communication received from bank. I’ve no idea what’s going on there.

    Shall I approach to bank ombudsman or District Consumer Forums?

    Looking for your valued suggestion.

    Thanks for your time.

    Regards.

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  • Viraj Nandoskar says:

    I had the case where My bank statement showed ATM cash withdrawal from a place where I didn’t visit and the debit card was with me. I reported this to the bank and they said refund will be given in 7 business days. What further actions can be taken to investigate and also what can be done to stay away from this in future

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  • SharmaNikunj says:

    My account was debited by Rs. 1 lakh via several ATM transactions. The money has been withdrawn in chinese currency (CNY) as reflected in the bank statement and this looks like an apparent case of foreign fraud. The bank has certainly been unable to keep my data secure and my atm card and pin number has been leaked to someone. I have already lodged a complaint with the Police and the bank. What should i do next?

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  • D. K.Badgaiyan says:

    Some body has illegally withdrawn an amount of more than two lakes from a/c of my relativefrom 28/01/2016 to 05/08/2016 of ubi burhar branch of Shahdol district at m.p.through ATM & online shoping while ATM was with him & ATM pin code never disclosed to anybody..Matter came to his notice on 05/08/2016 during updating of pass book.Reported to local police & bank authorities within one week & thereafter to cyber crime branch Bhopal.

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  • Sujit says:

    I have a similar problem as SharmaNikunj. My Axis Bank account was debited Rs 21078 four times i.e total of approx 84,000/- within a minute. It was withdrawn in CNY (Chinese Currency) as reflected in the bank statement. The ATM card was with me during that time as I got the sms /email messages. The bank has been unable to keep my data secure as I have not disclosed my ATM details to anyone. The bank says lodge an FIR but Police will not record FIR but just accept a complaint to their Bank Fraud cell which I have done. I need some legal help to pursue the matter with Axis Bank. What should I do next?

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  • Sujit says:

    Thank you for referring to your legal expert. I reside in Kolkata so I would appreciate if you kindly provide a contact in Kolkata for convenience.

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  • Ahtesham Hussain says:

    Hello Sir,
    I am Ahtesham Hussain.Residing in ghaziabad.I have an axis bank account in noida,sector-16.Yesterday on 6th Oct 2016 at 11am I got a sms that Rs20000 has been withdrawn from my accound.Before I could understand anything two more transactions took place at an interval of 1 mintue of 20000 and 10000.
    I blocked the card by that time.I got one more sms which suggested someone was still trying to withdraw but it didn’t happend.So total of Rs50000 was withdrawn from my account.When I jumped to see if I have dropped my ATM somewhere I found it in my purse itself.
    I called customer care and registered a complaint.Axis bank has registered the complaint and provided me the complaint number.
    Now something about police.
    When I went to vaishali thana A policeman with 2 star told me that since your account is in branch which is in noida-16 your should go to the noida-16 thana.And when I went to sector-16 chowki he told me you should go to ghaziabad police since the crime has happened in ghaziabad. one of them is lying.How to find who is the lier.Which police should file the FIR?

    Thanks
    Aht

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  • monica dsouza says:

    i had atm machine i had given my shop sapce for rent to place a icici atm machine since last 6 month they have close machine without any reason or notice given to us as they through out they call us and say pls give a machine but we told we want a registed notice to vaccant a machine still 6 month no rent is received and tell us that machine does not have much transaction so pls help me whom contact and where to complain

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  • Harish says:

    Hi sir

    My father had visited icici bank ATM,After longer attempt to withdraw money he cudnt see money coming out of thr ATM,he asked one person to come in n help because no security guards were at there ATM..that person advised him to use red button and cancel the transaction and he did that..after that we got the msgs from bank that transaction was successful and 10k has been withdrawn..we filed a complain with bank they are saying that transaction is seen to b successeful..how to deal with bank because my father has not withdrawn complaining tht ATM had an error…plz suggest what can we do

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  • Harish says:

    Thank you sir

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  • Bhushan Telang says:

    I am Bhushan, having an account in axis bank, had experienced an online fraud worth Rs 15000 through my credit card, for which I had filled dispute/reimbursement form at the branch and also filed a complaint with the local police station. I have also complained regarding this to bank authority, but still they are asking me to pay the fraudulent amount, what should I do, should I pay full amount or minimum due or wait till my reimbursement happens if bank considers it as a fraud…thanks

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  • Priyanshu says:

    Sir
    It happens wid my sister one day suddenly i.e 12am of 22feb 2017 we recieved a msg of cash withdrawal of 5000 and 12k from atm of mumbai thane while at that time they r at home with their atm kindly suggest wat to do ????we r not safe any where .

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  • Mumbailocal says:

    If any Fraud happens go to the neaerest police station and lodge an Fir ,submit a copy to your bank and then followup everyday

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  • JAYAPRAKASH H N says:

    Sir, On 03 Oct I went to SBI Uttarqhqlli & took a Token for depositing cash (Rs.25000), after 45 mts when my token number was called I went to the counter and gave the amount and the filled up Pay-in-slip. The Cashier advised me to go to the ATM and deposit the amount. (No where in the bank premises it is displayed “CASH FOR OTHER BRANCHES NOT ACCEPTED HERE). Then I went to the ATM next door, after inserting my card & entering PIN I put the cash10x2000 + 10×500) when indicated. The machine accepted Rs.23000/- one note of RS.2000/- was coming out again and again, on third attempt it was accepted. There are two Cash vending and one depositing machines in that enclosure. On the pretext of helping me to force that Rs.2000/- note a person stood behind me. After the transaction was complete I went away. Only after I got my pass book printed next day I realized that Rs.30000/- has been withdrawn same day. Immediately I went to the SBI Uttarahalli branch and gave them a written complaint as advised by them. After some time the Asst Manager told me to complain to the Police as there is fault of them. Though I complained to the Subramanyapura PS, they say if the money is withdrawn without the card, it is definitely the fault of the machine. I have been shunting betwen the bank and Poiice Station since 04 Oct till date. Kindly advise. Thanking you. Jayaprakash

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