Credit Card Fraud Case – Unauthorized Transaction Through Social Engineering – Legal Remedies Available

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by

Adv Sudhir Rao
in

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Credit Card Fraud Case - Unauthorized Transaction Through Social Engineering - Legal Remedies Available

Mr.X received a phone call from someone claiming to be from X.Bank, stating they would help him get a new credit card. Through a video call, the fraudster gained access to Mr.X’s mobile phone, including his messages and virtual card details. The scammer then initiated multiple unauthorized transactions totaling ₹58,998 on DD/MM/YYYY. The bank immediately called Mr.X when the transactions occurred and blocked his card. Despite reporting the fraud within two hours and providing all necessary documentation, the bank has not reversed the fraudulent transaction even after one month. Mr.X now faces financial loss and is seeking legal remedies to recover his money and ensure the fraudsters are prosecuted.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

File a police complaint immediately under cyber crime provisions. Contact your bank’s nodal officer for credit card disputes and escalate to banking ombudsman if no response within 30 days. Document all communications with the bank and fraudster. Report to National Cyber Crime Reporting Portal within 24 hours of the incident.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), this case falls under Section 318 (cheating), Section 319 (cheating by personation), and Section 336 (forgery of electronic records). The Bharatiya Nagarik Suraksha Sanhita (BNSS) provides procedural framework for investigation under Section 173 (police investigation) and Section 154 (FIR registration). Information Technology Act, 2000 Section 66C (identity theft) and Section 66D (cheating by personation using computer resource) are also applicable. Banking Ombudsman Scheme provides additional consumer protection remedies.

If You Are the Complainant

  • File FIR at cyber crime police station or local police station immediately
  • Submit written complaint to bank’s nodal officer with transaction details and timeline
  • Report on National Cyber Crime Reporting Portal (cybercrime.gov.in)
  • Collect all evidence including call recordings, screenshots, transaction alerts
  • Approach Banking Ombudsman if bank doesn’t respond within 30 days
Credit Card Fraud Case - Unauthorized Transaction Through Social Engineering - Legal Remedies Available

If You Are the Victim

  • Immediately block your credit card and inform bank about unauthorized transactions
  • Change all passwords for banking apps, email accounts, and digital wallets
  • Monitor your credit report for any suspicious activities or new accounts
  • Keep detailed records of all communications with bank and police
  • Don’t share OTP, card details, or banking credentials with anyone over phone

How the Police Behave in Such Cases

Police typically register FIR under cyber crime sections and forward the case to cyber crime cell. They may request technical analysis from banks and telecom companies to trace the fraudsters. Investigation involves examining call records, digital evidence, and transaction trails. Police often coordinate with banks for technical details and may seek assistance from cyber forensic experts. Response time varies but cyber crimes are generally given priority due to digital evidence preservation requirements.

FAQs People Normally Have

Can I get my money back? Yes, banks are liable to reverse unauthorized transactions if reported within specified timeframes and proper documentation is provided.

How long does investigation take? Cyber crime investigations typically take 3-6 months depending on complexity and cooperation from financial institutions.

Will the fraudster be caught? Success depends on digital trail preservation and technical investigation capabilities of cyber crime units.

Can I claim compensation? Yes, through Banking Ombudsman and consumer courts for harassment and financial loss.

Credit Card Fraud Case - Unauthorized Transaction Through Social Engineering - Legal Remedies Available

What Evidence Is Required?

  • Credit card statements showing unauthorized transactions
  • SMS alerts and transaction notifications from bank
  • Call records and phone numbers of fraudsters if available
  • Screenshots of video calls or messages exchanged
  • Bank complaint acknowledgments and correspondence
  • Police complaint copy and FIR number
  • Timeline documentation of when fraud was discovered and reported

How Long Will the Investigation Take?

Cyber crime investigations typically take 3-6 months for completion. Banking Ombudsman resolution process takes 30-60 days from complaint filing. Court proceedings, if required, may extend 6-12 months depending on case complexity. Bank internal investigation for transaction reversal should complete within 90 days as per RBI guidelines. Technical analysis and digital forensics may require additional time based on evidence complexity.

Advocate Sudhir Rao, Supreme Court of India

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