Cyberattacks, WhatsApp hacks, and reimbursements – Part II

THIS is a follow-up article to that which was published last week. Hence, I have added the words Part II.

- By Ranel T. Wijesinha, FCA, MBA

The intention of my Thought Leadership Forum article of 26 May 2025, (link: https://www.ft.lk/columns/Cyberattacks-WhatsApp-hacks-breaches-and-compromises/4-776867) was to urge banks, regulators, emergency response teams and dedicated institutions, law enforcement authorities and domain experts, internet and cybersecurity professionals to build a “collective infrastructure” in terms of awareness enhancement, risk management and mitigation.

I also discussed a comparative analysis of the practices adopted by other jurisdictions, particularly of the United Kingdom. The examples I gave, clearly showcase the responsibility of banks, not only to reimburse victims but also to monitor and act against fraudulent activities within their own systems. Today, I will discuss examples in India, and a few other perceived to be first world jurisdictions, like Canada, Australia and New Zealand given that there is a belief among many, that in evaluating ourselves as a country, we should not compare ourselves with the developed world. I disagree.

India

There are notable instances in India where banks have been directed to reimburse customers who fell victim to fraud. These decisions often stem from judicial or consumer forum rulings emphasising the bank’s responsibility to protect customer funds and act promptly upon detecting fraudulent activities.

Key cases of bank reimbursements in India

Rajasthan High Court orders IDBI Bank to refund INR 58.9 lakhs

In May 2025, the Rajasthan High Court directed IDBI Bank to refund INR 58.9 lakhs, along with 6% interest since 2022, to a chartered accountant who was a victim of cyber fraud. The court emphasised that the customer bore zero liability and highlighted the need for mechanisms to safeguard customers against unauthorised transactions.

Consumer Court Directs Bank Manager and Cashier to Refund INR 9.21 Lakhs