Online Refund Fraud: How a Cybercrime Complaint Helped Recover Money from a Scammer

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.

Rohan Gupta, a working professional from Gomti Nagar, Lucknow, placed an order through a small online seller operating on a regional e-commerce platform — not a well-known name like Flipkart or Meesho, but a private seller who had been advertising heavily on social media around late February 2025. The product never arrived. The seller stopped responding to calls and messages. Rohan filed a detailed cybercrime complaint on the National Cybercrime Reporting Portal on 4 March 2025, but received an automated email within a day stating that his grievance had been closed. Assuming this was just another dead end with government systems, he did not even log back in to check the remarks.

That's when Rohan approached Advocate Sudhir Rao. Earlier efforts — a complaint email to the seller, a payment dispute with his UPI provider, and the cybercrime portal filing — had all stalled without resolution. After reviewing the case, Advocate Sudhir Rao's team advised Rohan to check the portal remarks carefully. There, police had actually directed him to visit the nearest station. Armed with that documented trail, Rohan sent the seller a clear communication citing the police direction. The seller, who had never picked up any calls, telephoned Rohan the very same evening. By 12 March 2025, a partial refund of Rs. 1,500 had been initiated. The specialised approach — knowing exactly how to use the cybercrime portal record as leverage in the right sequence — is what changed the outcome.

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.

Document everything immediately: Screenshots of all transactions, chat conversations, payment confirmations, and the seller's social media presence should be saved the moment you suspect fraud. Don't delete anything — even messages that seem unimportant.

Check your cybercrime portal complaint status carefully: Many people assume a "closed" status means rejected. It often doesn't. It can mean the matter has simply been transferred to local police with directions. Log in, read the remarks, and act on them. Frankly, this one step alone changes outcomes in a surprising number of cases.

Domain experience matters here: Online fraud cases sit at the intersection of cybercrime law, consumer protection, and criminal procedure. An advocate who regularly handles cybercrime matters will understand the exact sequencing of complaints, portal escalations, and FIR filings — procedural and evidentiary nuances that a general practitioner may not be fully familiar with. Engaging such an advocate typically leads to faster resolution.

Applicable Sections of Law

Online refund fraud of this nature attracts provisions under both the Bharatiya Nyaya Sanhita, 2023 (BNS) and the Information Technology Act, 2000 (IT Act), along with consumer protection statutes:

• Section 318 BNS — Cheating: where the seller dishonestly induces payment by false representation of delivering goods or services.
• Section 319 BNS — Cheating by personation: applicable where a fake seller identity or impersonation of a brand is involved.
• Section 316 BNS — Criminal breach of trust: where money is accepted for a purpose and fraudulently diverted.
• Section 66C and Section 66D of the IT Act, 2000 — Identity theft and cheating by personation using computer resources, commonly applied in online payment fraud cases.

Punishment and Penalties

And here's the thing — the punishment varies quite a bit depending on which section actually gets invoked.

• Section 318 BNS (Cheating): Imprisonment up to three years, or fine, or both. Cognizable and bailable in its basic form.
• Section 318(4) BNS (Cheating causing dishonest inducement): Imprisonment up to seven years and fine. Cognizable and non-bailable where the amount or deception is significant.
• Section 66D IT Act: Imprisonment up to three years and fine up to Rs. 1 lakh. Cognizable and bailable.
• Offences under Section 318(4) BNS are non-compoundable in court but may be settled at the pre-FIR stage if the complainant is satisfied.

Jurisdiction — Where to File the Case

For online fraud, territorial jurisdiction is flexible. As held in Siddharth Vashisth v. State (NCT of Delhi), 2010, criminal courts have jurisdiction where any part of the offence was committed — including where the victim made the payment or received the fraudulent communication. So Rohan, based in Lucknow, can file at the cybercrime police station in Lucknow or the nearest police station. Complaints can also be filed on the National Cybercrime Reporting Portal (cybercrime.gov.in). For consumer forum relief, the District Consumer Disputes Redressal Commission at the victim's location has jurisdiction under the Consumer Protection Act, 2019, where the claim is below Rs. 50 lakh.

What if Police Refuse to File FIR?

Refusal to register an FIR in a cognizable offence is itself unlawful. The Supreme Court settled this in Lalita Kumari v. Government of UP, 2014. If police decline:

• Submit a written application to the Superintendent of Police under Section 173(4) BNSS, specifically requesting FIR registration.
• File a private complaint directly before the concerned Magistrate under Section 175(3) BNSS — the Magistrate can direct police to investigate.
• Approach the High Court by filing a writ petition under Article 226 of the Constitution, directing registration of FIR — typically a last resort when other avenues fail.
• Document every refusal in writing, with date and officer name, as this becomes evidence of police inaction.

Rights of the Accused

Now, before you act, understand this — even a fraudster has rights once arrested, and knowing them matters.

• Right against self-incrimination under Article 20(3) of the Constitution — no person can be compelled to be a witness against themselves.
• Right to legal representation under Article 22 — the accused must be allowed to consult a lawyer of their choice.
• Right to be produced before a Magistrate within 24 hours of arrest, as mandated under Article 22(2) and Section 57 BNSS.
• Right to a copy of the FIR and to be informed of the grounds of arrest at the time of arrest.
• Right to be informed of bail entitlement in bailable offences, as required under Section 479 BNSS.

Bail Provisions

The bail character of these offences depends on the specific section charged. Section 318 BNS (basic cheating) is bailable — the accused may seek bail from the police station itself. But Section 318(4) BNS is non-bailable where the deception caused significant harm, requiring a bail application before the Magistrate. Anticipatory bail under Section 482 BNSS can be sought from the Sessions Court or High Court if arrest is anticipated. Regular bail after arrest is governed by Section 480 and Section 483 BNSS. Courts typically impose conditions such as surrendering the passport, not contacting the complainant, and periodic station reporting. Bail strategy must be calibrated early, ideally before arrest.

Quashing of FIR / Case

Where a settlement is reached — as happened in Rohan's situation — the accused or both parties may approach the High Court to quash the FIR under Section 528 BNSS, which preserves the court's inherent powers. In Gian Singh v. State of Punjab, 2012, the Supreme Court held that the High Court can quash proceedings even in non-compoundable offences if a genuine compromise has been reached and no public interest is affected. Grounds for quashing include: no prima facie offence disclosed in the FIR, the complaint being an abuse of process, or a bona fide settlement between private parties. This route is worth exploring once a full refund is secured.

If You Are the Victim

Don't wait. The faster you move, the better your chances of recovering anything at all.

• File a complaint immediately on the National Cybercrime Reporting Portal (cybercrime.gov.in) — and crucially, log back in after 24-48 hours to read the remarks, not just the status label.
• Simultaneously report the fraudulent UPI transaction to your bank and the NPCI helpline (1800-120-1740) for possible freezing of the recipient account.
• Preserve all digital evidence — screenshots, order confirmation emails, chat logs, payment receipts — in a secure location before anything is deleted or overwritten.
• Do not make threats or post abusive content about the seller publicly on social media, as this can complicate your own legal position.
• If the seller has a social media page or website, archive it using a tool like web.archive.org — this helps establish the seller's fraudulent representations.

Documents You Must Keep Ready

• Aadhaar card and PAN card (identity proof for complainant)
• Screenshot or PDF of the payment transaction from your UPI app, net banking, or credit card statement
• Order confirmation message, invoice, or any acknowledgement from the seller
• Full chat history with the seller across all platforms (WhatsApp, Instagram DMs, email)
• Screenshot of the seller's product listing or advertisement at the time of purchase
• Cybercrime portal complaint acknowledgement number and all subsequent portal remarks
• Any call logs or recorded conversations if calls were made or received
• Bank statement showing the debit corresponding to the fraudulent transaction

What Evidence Is Required?

Make no mistake, weak evidence is the single biggest reason these cases don't move forward. Get this right from day one.

• Digital payment record: This is primary evidence — UPI transaction ID, bank debit entry, or credit card charge slip directly links money to the accused.
• Seller's advertisement or product listing: Establishes the false representation that induced payment — essential for proving cheating under Section 318 BNS.
• Communication records: Chats and emails proving the seller received money, acknowledged the order, and then stopped responding.
• Cybercrime portal acknowledgement: Demonstrates prior complaint and police direction — useful both for FIR registration and for pressuring the seller.
• Witness evidence: If anyone else was defrauded by the same seller, their testimony and transaction records can establish a pattern, which strengthens the case considerably.
• Electronic device logs: IP address records or device data obtained through investigation can corroborate the seller's identity where they operated anonymously.

How Police Behave in Such Cases

Make no mistake — cybercrime complaints involving small amounts are frequently deprioritised. Police stations in smaller cities often lack dedicated cybercrime cells, and officers may be unfamiliar with the portal system or reluctant to register FIRs for amounts below Rs. 10,000. Grievances get "closed" on the portal without proper follow-up. That said, once a complainant demonstrates awareness of the process — showing portal remarks, citing Lalita Kumari, or referencing the SP's supervisory role — the posture tends to shift. Cybercrime cells in larger cities like Lucknow, Pune, and Kochi have improved significantly, but follow-up by the victim remains essential at every stage.

Timeline of Legal Process

• Day 1-3: File complaint on cybercrime portal and simultaneously notify your bank — this is the fastest first step.
• Day 2-5: Check portal remarks and, if directed, visit the nearest police station with all documents.
• Week 1-2: FIR registration (if police cooperate) or escalation to SP / Magistrate if refused.
• Week 2-8: Police investigation — summons to accused, bank account tracing, digital evidence collection.
• Month 2-4: Chargesheet filing before Magistrate within 60 days of arrest (Section 193 BNSS), or 90 days for serious offences.
• Month 4-6: Cognizance taken by Magistrate; framing of charges.
• Month 6 onwards: Trial — examination of witnesses, cross-examination, arguments.
• Final stage: Judgment, and if needed, appeal before Sessions Court or High Court.

How Long Will the Investigation Take?

Realistically, cybercrime investigations for small-value online fraud take anywhere from 30 to 90 days for the initial tracing of accounts and identification of the accused. In cases where the fraudster has used multiple or proxy accounts, this can extend to 4-6 months. Chargesheet filing is statutorily required within 60 or 90 days of arrest under Section 193 BNSS. Delays are common where inter-state jurisdiction is involved, but persistent follow-up with the investigating officer accelerates the process.

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

Facing a similar matter? Speak to a Delhi criminal defence lawyer — Advocate Sudhir Rao appears in bail, trial and appellate matters before the Delhi District Courts, the Delhi High Court and the Supreme Court of India.