Cyber Fraud Victims Face Severe Delays and Minimal Accountability From Banks, Study Reveals

The Hindu•Published: Oct 7, 2026 04:08 PM IST

A recent study by Common Cause and Lokniti, CSDS, titled the Status of Policing in India Report 2026, reveals that 13% of surveyed respondents experienced cybercrime, with 54% being victims of digital financial fraud. Although 63% of victims reported incidents to their banks within 24 hours, they encountered significant institutional delays, poor customer support, and a widespread reluctance by banks to accept financial liability.

High Financial Fraud: Over half of all reported cybercrimes in the survey involved digital financial fraud, making the banking sector a critical frontline in crime response and mitigation.
Evading Bank Liability: Despite RBI guidelines protecting customers who report breaches promptly, interviewed victims reported that banks routinely blamed them by claiming they collaborated with scammers.
Alarming Response Delays: Case studies highlighted severe operational lags, such as a Gurgaon journalist whose bank failed to block his account in time, resulting in fraudsters taking a ₹5 lakh loan.

The Context & Background

While regulatory frameworks like RBI guidelines outline clear liability rules for unauthorized transactions, systemic enforcement gaps leave everyday victims struggling to recover stolen funds and facing institutional apathy.

Why it matters:The findings expose critical vulnerabilities in how financial institutions handle digital fraud, undermining public trust in secure banking systems. As cybercrime escalates, the persistent failure of banks to take accountability or act swiftly threatens consumer financial security and highlights an urgent need for stricter regulatory enforcement.

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