Banks will compensate cyber fraud victims if due diligence is not followed says Haryana DGP
Haryana DGP OP Singh has announced that banks will be held responsible for compensating cyber fraud victims if they fail to follow due diligence during financial transactions. The directive aims to strengthen accountability and provide better protection for customers facing rising online fraud cases.
Haryana Director General of Police OP Singh has stated that banks must compensate victims of cyber fraud whenever investigations establish that the bank failed to follow required due diligence. The directive comes at a time when cybercrime is rising sharply, with fraudsters exploiting digital banking systems and customers often left without financial recovery.
According to the DGP, many fraud cases involve lapses such as delayed reporting to the cyber helpline, slow action on blocking suspicious transactions or inadequate verification protocols. When such gaps are identified during investigation, the responsibility will fall on the bank to reimburse the affected customer.
The announcement aligns with national guidelines that emphasise shared responsibility between financial institutions and customers. Singh noted that prompt reporting plays an important role because early alerts can stop or reverse fraudulent transfers. He encouraged citizens to immediately call the cybercrime helpline 1930 when they notice any suspicious activity.
The Haryana Police Cyber Cell has been strengthening its capabilities through specialised teams and improved coordination with banks. Authorities believe that clearer accountability will push banks to tighten verification measures, upgrade security systems and respond faster to fraud alerts.
Cyber fraud cases have become increasingly sophisticated, involving phishing links, fake customer care calls, remote access tools and fraudulent investment schemes. Officials say that banks must adopt stronger monitoring systems and ensure that customers receive timely warnings about potential risks.
The directive is expected to improve trust in digital banking and reduce the financial burden on victims. With more people relying on online transactions, the move aims to create a safer digital ecosystem through improved vigilance and faster response from banking institutions.
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