#credit card fraud

Uttarakhand State Consumer Disputes Redressal Commission rules that banks are not liable for fraudulent credit card transactions if OTP and CVV were validated, even if the consumer did not authorize the payment. The ruling underscores that consumers must report unauthorized transactions within three days to avoid liability, shifting the burden of proof to the cardholder.

The Calcutta High Court has ruled that banks cannot dismiss customer complaints of unauthorized digital transactions without proving the cardholder’s negligence, as mandated by RBI’s 2017 Zero Liability policy. This sets a binding precedent for all banks to bear the evidentiary burden in fraud disputes, empowering consumers against automated rejections by ombudsman mechanisms.