Customer Maneesh Sethumadhavan alleges a major security failure at IndusInd Bank, where ₹4.27 lakh was fraudulently debited despite multiple safeguards. Complaint details, legal options, and customer rights explained.
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Complaint Summary : IndusInd Bank Security Failure – Customer Maneesh Sethumadhavan Reports ₹4.27 Lakh Fraud
| Customer Name | Maneesh Sethumadhavan |
|---|---|
| Not disclosed | |
| Complaint Type | Fraudulent Transactions / Security Breach |
| Bank / Company | IndusInd Bank |
| Product / Service | Savings Account + Fixed Deposit |
| Amount Involved | ₹4,27,000 |
| Date of Incident | August 2025 |
| Issue Description | Unauthorized access, FD broken without consent, OTP misuse, multiple fraudulent debits, failure of bank safeguards. |
| Customer Action | Immediate calls, branch visit, escalation attempts to staff and manager. |
| Current Status | Loss not refunded. Customer urging RBI & Ombudsman intervention. |
| Source | Original LinkedIn Post by Maneesh Sethumadhavan |
Full Complaint Details
Mr. Maneesh Sethumadhavan, an employee in the Technical Department at DHFL India, has raised a serious complaint against IndusInd Bank regarding a massive fraud of ₹4.27 lakh from his account.
Key Allegations by the Customer
- Unauthorized Transactions: Multiple debits took place through unauthorized beneficiary additions.
- OTP Misuse: OTPs were generated from an unknown number without customer knowledge.
- Fixed Deposit Misuse: His FD was liquidated without verification, transferred to savings, and then instantly debited.
- Failure of Call Centre: IndusInd Bank’s helpline remained busy at the most critical moment.
- Branch-Level Failure: Despite visiting the branch during the fraud, the hacker continued draining money in front of the manager.
- Staff Negligence: Instead of urgent action, staff wasted time on debit card discussions.
- No Safeguards: No cooling period, no red flags, and no system checks for such high-value transactions.
- Internal Risk: Three of the fraudulent transfers went to IndusInd Bank accounts itself, yet they were not flagged or stopped.
Why This Case is Critical
This is not an isolated issue but raises deep concerns about:
- Bank Security Measures – If OTPs can be generated from unknown numbers, how secure is the system?
- FD Protection – Customers expect their Fixed Deposits to be the safest investment, yet it was broken without consent.
- Staff Training & Accountability – In fraud cases, every second counts, but the staff failed to act promptly.
- Systemic Gaps – Even intra-bank fraud transactions were not flagged, exposing a weakness in IndusInd’s fraud detection system.
This incident questions the trust and reliability of IndusInd Bank’s digital and in-branch systems.
Legal & Regulatory Angle
Under RBI Guidelines on Unauthorized Transactions (2017):
- If a fraud is reported within 3 working days, the customer has zero liability.
- Banks must reverse the fraudulent amount within 10 working days.
- Failure to prevent or act on such frauds can hold the bank accountable under the Consumer Protection Act, 2019.
Mr. Sethumadhavan’s case clearly fits into this framework since he acted immediately yet the fraud continued.
What Customers Can Do in Similar Cases
- Report Immediately – Call the bank helpline and email the grievance officer.
- File an FIR – Submit a cybercrime complaint via cybercrime.gov.in.
- Escalate to Bank Ombudsman – File a complaint at RBI CMS Portal.
- Approach Consumer Court – Claim refund + compensation for negligence.
- Public Awareness – Share experiences on forums like Choice4Voice.com to pressure banks into accountability.
FAQs on IndusInd Bank Fraud Complaints
Q1. Can IndusInd Bank reverse fraudulent transactions?
Yes, as per RBI, banks must refund unauthorized debits reported within 3 days.
Q2. What should I do if OTPs are generated without my consent?
Block your account instantly and file a cybercrime report.
Q3. Is breaking an FD without customer authorization legal?
No. Banks must verify customer approval before liquidating FDs.
Q4. How fast should banks act in fraud cases?
Immediately – RBI mandates resolution within 10 working days.
Q5. Can I hold IndusInd Bank accountable for negligence?
Yes, via Consumer Court or RBI Ombudsman.
Q6. Is customer liable if account is hacked?
If reported within 3 days, liability is zero.
Q7. Why are intra-bank fraudulent transfers risky?
Because banks can instantly flag them, yet IndusInd failed in this case.
Q8. What documents are needed to file a complaint?
Bank statements, FIR copy, email records, and grievance numbers.
Q9. Can banks delay refund citing investigation?
No. RBI directs provisional credit within 10 days.
Q10. How do I escalate if branch staff ignores me?
Contact the Bank’s Grievance Redressal Officer and then RBI.
Q11. Can cybercriminals access my FD?
Only if bank systems allow FD liquidation without strong authentication, as alleged here.
Q12. What is the role of the Cyber Cell in such fraud?
They trace fraudulent accounts and beneficiaries for recovery.
Q13. Can OTP frauds be prevented?
Yes – through SIM lock, email alerts, and multi-factor authentication.
Q14. How do I protect my FD from fraud?
Ask for additional authentication layers or separate OTP for FD closure.
Q15. Is IndusInd Bank known for such complaints?
Several customers have raised similar concerns online about security lapses.
Q16. How to contact IndusInd Bank for fraud reporting?
Through their toll-free number and grievance officer email (must be escalated immediately).
Q17. Can the Ombudsman penalize IndusInd Bank?
Yes, for negligence, delay, and unfair practices.
Q18. What if fraud happens even inside the branch?
The bank is fully liable, as customer presence was confirmed.
Q19. How do I claim compensation for mental harassment?
File under the Consumer Protection Act in addition to refund demand.
Q20. What if fraudulent beneficiary accounts belong to IndusInd itself?
This raises internal red-flag failures, strengthening the customer’s legal case.
Q21. Can such cases impact IndusInd Bank’s license?
If repeated and unaddressed, RBI can impose penalties.
Choice4Voice.com Is Here to Help You
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Simply write a LinkedIn post and tag our official page Choice4Voice.com
Submit your complaint directly : https://choice4voice.com/submit-your-complaint/
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