Many people continue to fall for the so-called email schemes originating from ‘safe havens' abroad even after repeated warning from the Reserve Bank of India.

But the Office of the Banking Ombudsman for Kerala, the Union Territory of Lakshadweep and Mahe, has now reported a case of a bank letting its guard down to allow a fraudster to play havoc with a customer account.

NON-RESIDENT

The complainant, a non-resident working in Nigeria, had an NRE savings bank and term deposit accounts with a bank.

He approached the Office of the Banking Ombudsman with a complaint saying that various unauthorised withdrawals had been carried out from his accounts.

He wanted the bank to refund the money with interest.

When approached for an explanation, the bank stated in its undertaking furnished with the Office of Ombudsman that the complainant had provided a particular email ID for communication.

It had also received a fax message signed by the account holder, requesting the bank to note the change in his email ID and provided the new one.

E-MAIL FRAUD

Thereafter, an email was received from the new ID requesting for an update of status of his accounts as well as a copy of the account statement.

Acting in response, the bank had supplied all necessary details.

Meanwhile, the bank received fresh instructions from the ID requesting transfer of funds from the account. Various withdrawals were also carried out in the meantime.

It was only when the complainant came to India on vacation that he came to know about the withdrawals.

He categorically denied having sent a fax message regarding change of his email ID and said it was a fraud played on him.

DUE DILIGENCE

The complainant argued that the bank had not exercised due diligence to confirm the veracity of the fax message and subsequent emails resulting in the unauthorised withdrawal of funds from his account.

This is the context in which he lodged a complaint with the Banking Ombudsman.

On its part, the bank had lodged a complaint with the police (cyber crime) and took the stand that the case was pending with the cyber crime authorities and hence beyond the scope of the Banking Ombudsman scheme.

The bank officials were summoned by the Ombudsman and was explained the lapse and deficiencies which led to several unauthorised payments.

The bank was directed to reimburse a sum of Rs 5,27,051 to the complainant with interest which they complied with.

(Disclaimer: The Reserve Bank of India does not vouch the propriety or legality of orders passed by the Banking Ombudsman. The object of releasing the details of cases is merely for the purpose of dissemination of information on the working of the Banking Ombudsman Scheme.)

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