A Kerala resident fell victim to a social‑media scratch‑card scam, losing ₹9,854 from his Federal Bank account. The consumer commission has ordered the bank to refund the amount and pay additional compensation.

Key Takeaways

  • A Kerala consumer lost ₹9,854 after scratching a fraudulent "cashback" card.
  • Federal Bank initially credited the amount back, then reversed the credit.
  • The consumer commission directed the bank to refund the full amount plus compensation.

Incident Overview

In July 2021, a Kerala man discovered a "unlimited cash back" scratch card on social media, featuring the PhonePe logo. Being a regular user of Google Pay and PhonePe, he scratched the card twice, after which ₹4,885 and ₹4,969 were immediately debited from his Federal Bank savings account.

He promptly reported the unauthorized transactions to the bank. On July 15, 2021, the bank credited the two amounts back to his account, but on August 4, 2021, it reversed the credit, reclaiming the full ₹9,854.

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Why This Matters

BozokMedia analysis shows that the bank attempted to shift liability onto the customer by alleging negligence without concrete evidence, contravening core consumer‑protection principles. Such rulings could influence trust in India’s rapidly expanding digital payments ecosystem.

"Banks must prioritize consumer safety in electronic transactions; shifting blame undermines regulatory intent," says finance law expert Arjun Mehta.
Did You Know?: UPI fraud incidents rose by 15% between 2020 and 2022 across India.

Consumer Commission Verdict

The commission held that the bank failed to provide reliable evidence that the complainant was negligent or complicit. Accordingly, under RBI guidelines, the bank was ordered to re‑credit ₹9,854, pay ₹5,000 as compensation, and cover ₹3,000 procedural costs within 30 days.

Frequently Asked Questions

Q1: What steps can consumers take to avoid similar scams?
A: Never scratch or engage with unknown promotional cards and keep your UPI PIN confidential.

Q2: Is the bank obligated to refund unauthorized UPI transactions immediately?
A: Refunds become mandatory after a consumer commission or regulator issues a directive; otherwise, banks may face penalties.