Chandigarh, February 16, 2025 (Bharat Khabarnama Bureau): Aiming to control the growing threat of cyber frauds, particularly targeting senior citizens, the Punjab and Haryana High Court has directed the DGPs of Punjab, Haryana, and UT Chandigarh to formulate a standard operating procedure (SOP) in collaboration with banks to safeguard people from cyber scams.
The High Court has suggested that banks should implement a strict verification process before allowing large financial transactions, especially in cases involving suspicious or long-distance payments. It emphasized that funds should only be transferred after a bank official, such as a relationship manager, personally verifies the transaction with the account holder.
Concerns Over Cyber Frauds and AI Misuse
The court expressed concerns that with the advancement of technology and artificial intelligence (AI), cyber frauds pose an unprecedented challenge to society. Recognizing the legal implications, the court has set a three-month deadline for compliance and has directed the High Court Registry to submit a status report on the matter.
This directive was issued by Justice Harpreet Singh Brar while dismissing the anticipatory bail plea of Farzand Ali, accused of defrauding a victim of ₹46.35 lakh on July 9, 2024, by threatening him with cyber arrest. The FIR alleged that the accused deceived the complainant using fear tactics, yet ICICI Bank permitted the transaction without verifying the customer’s consent.
High Court’s Observations on Cyber Crime Risks
Justice Brar emphasized that cyber frauds are increasingly being used as a tool to extort large sums of money through manipulation and deception. He noted that scammers often target individuals unfamiliar with technology, particularly online banking, by instilling false fears of legal action.
The court acknowledged that the misuse of technology is financially devastating, especially for senior citizens, who are often the prime targets. Losing retirement savings or emergency funds not only causes financial distress but also has severe emotional and psychological consequences, it observed.
Legal and Preventive Measures Suggested
The court underscored the importance of stronger banking regulations to prevent unauthorized fund transfers and called for stringent policies to combat cyber scams. Additionally, it highlighted the burden of prolonged legal battles on victims, further exacerbating their hardship.
