Banks may have to compensate digital arrest scam victims for lapses, Supreme Court tells RBI

The Supreme Court has asked the RBI to examine a compensation mechanism for cyber fraud victims when banks fail to exercise due diligence. It also called for measures to flag unusual transactions and verify them before transferring funds. The observations came during a hearing on digital arrest scams, including a case involving a woman who lost Rs 2.5 crore.

New Delhi: The Supreme Court on Thursday suggested that banks could face liability for compensating cyber fraud victims if their failure to conduct proper checks allows fraudulent transactions. It also called for stronger safeguards to stop suspicious transfers before victims lose their money.

Chief Justice of India Surya Kant questioned how people could fall for........

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