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Banks will have to pay cyber fraud victims if…, Haryana DGP makes a big announcement on online scams
ET Online | December 3, 2025 9:40 PM CST

Synopsis

Haryana DGP OP Singh stated banks may be liable for cyber fraud losses if due diligence is not followed, emphasizing proactive prevention over reactive measures. He highlighted the IT Act's mandate for banks to compensate victims in cases of negligence and announced initiatives for faster relief and cyber awareness.

Online fraud
Banks could be held responsible for losses suffered by cyber fraud victims if probes show they failed to follow due diligence, Haryana DGP OP Singh said on Monday. He stressed that the system must prevent cybercrime proactively instead of acting only after a complaint is filed, a TOI report. Singh said the IT Act makes it clear that banks must compensate victims in cases of negligence. He added, "If a bank fails to take appropriate measures to prevent fraud or overlooks suspicious transactions, resulting in losses, it must compensate the customer. Our investigation will determine whether the bank adhered to due processes in handling the defrauded amount." His remarks came during a surprise visit to the Cyber East police station.

Delayed action could cost banks

The DGP said banks can be held liable if they do not respond quickly when a fraud is reported. He highlighted that victims often spend more money recovering small sums. The police, he said, are working on faster release of smaller frozen amounts.

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Lok Adalat route for quick relief

Quoting a high court directive, Singh said police can take certain cases directly to Lok Adalats without registering an FIR. "If a victim's Rs 4,000 is frozen, they shouldn't have to struggle for months. Such cases can be presented before Lok Adalat for immediate relief," he said.
Banks to pay cyber fraud victims for due diligence failures: Haryana DGP OP Singh

Cyber awareness through students

Singh announced a wider awareness campaign using social media and community programmes. Head boys and head girls of schools and colleges will act as cyber ambassadors to guide students on online safety.

He said, "A dedicated network will also be established with the help of head boys and girls and SPIC MACAY to raise awareness about cybercrime and drugs through these enthusiastic Gen Alpha kids via events," in a social media post.

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Warning the public, Singh said most cybercrimes take advantage of panic and temptation. "Anyone offering unrealistic returns or pressuring you to share information is likely a fraudster. Vigilance is the strongest protection," he said.

Surprise inspection and instructions

During his inspection, Singh told officers to improve the waiting room’s cleanliness and comfort. He shared on X that he reached the station to file a digital arrest complaint and the gate sentry did not recognise him, directing him to the duty officer handling another case.

He also reminded police personnel to maintain a neat appearance. He asked a gunman how often he irons his uniforms and corrected an inspector whose cap was tilted.

Top officials rush to the station

After hearing about the DGP’s arrival, police commissioner Vikas Arora, the DCP (east), and the district attorney reached the Cyber East police station. Singh stayed there for more than two hours.

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Singh said he discussed with the police commissioner the problem of challan records pending for long periods before reaching Lok Adalats. "I instructed the CP to address this. Also, I advised IG (cyber) to visit at least one cyber police station each week. Identify three key problems faced by cybercrime victims and work towards resolving them," he said.

(Source: TOI)


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