Syndicate Bank loses Rs 1.13 crores of customer’s money

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In a repeat of a common cyber crime which have earlier been reported in the case of Exporters and Importers, an NRI customer of Syndicate Bank in Manipal has reportedly lost Rs 1.13 crores.

It appears funny that the Bank transferred money based on undigitally signed e-mail received in the name of the customer.

See Report here

It is almost like celebrating an anniversary of the article titled “Negligence of Export Promotion Councils, ECGC and Banks lead to Rs 2.35 crore fraud” published in this site on 27th November 2013 highlighting the responsibilities of Export Promotion Councils, ECGC and Banks in ensuring that such e-mail frauds are not committed.

It is unfortunate that the Bank remained illiterate to such information available in the market. RBI should also share with the public what action it has taken to educate the Bankers on such Cyber Crime Risks.

It is sad that Banks and other regulatory institutions seem to be oblivious of their responsibility to protect the citizens from such frauds.

Unfortunately this fraud has happened in Karnataka which is a haven for Cyber Criminals since there is no cyber judicial system operating here at present. With the Adjudicator of Karnataka shooing away Cyber Crime victims from seeking justice through his office, the CM and Chief Justice looking elsewhere, Cyber Crime victims of Karnataka have no where to go for justice. At least if the Bank had been head quartered outside Karnataka, the situation would have been better.

Until such time that there is change in the approach of Karnataka Government on re-activating the Adjudication system in the State and until the Chief Justice of Karnataka opens his eyes to the problem, it is better for Bank Customers in Karnataka to keep their money in Mumbai headquartered Banks since the adjudication system in Mumbai is more active and some justice can be expected.

Naavi

P.S: The details on why the Adjudication system is not active in Karnataka and why the Karnataka Government and Karnataka High Court is responsible for the miserable state of Cyber Judiciary in the State has been discussed several times in this site and requires no repetition. I wish CM Mr Siddaramaiah who is himself a law graduate or the Chief Justice of Karnataka invites me to explain why I feel so bitter.

Naavi

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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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