Delhi High Court Rules on Customer Negligence in Cyber Fraud Cases

The Delhi High Court ruled that customers who ignore security warnings and click on suspicious links cannot hold banks liable for losses due to cyber fraud. This decision arose from a case involving a customer who lost ₹2.6 lakh after clicking a phishing link. The court emphasized that customer negligence extends beyond sharing OTPs or login credentials to include interactions with suspicious links. The ruling overturned a previous decision that favored the customer, highlighting the importance of vigilance in digital banking. The Reserve Bank of India's 2017 guidelines were cited, indicating that banks are not liable if customers act negligently. The case underscores the shared responsibility between banks and customers in preventing cyber fraud.

Key Points: • Customers clicking suspicious links are deemed negligent by the Delhi High Court. • The court's ruling emphasizes that negligence includes ignoring security warnings. • Banks are not liable for losses if customers fail to protect their credentials.