HDFC Bank — ATM fraud and HDFC's attitude

Address:

Gautam Buddh Nagar, Uttar Pradesh

I am an HDFC Bank Preferred customer (customer ID #[protected]. On the morning of February 19 2015, when I woke up, I was shocked to see 10 back-to-back transaction SMSs of withdrawals from my HDFC bank account for Rs. 10, 000 each, amounting to a total withdrawal of a whopping Rs. 1 lakh, effectively emptying out my account. The transactions were carried out at an ATM in Village Barola in NOIDA at an ungodly hour and all in a span of 8 minutes between 1:10 AM to 1:18 AM. All this while, the debit card was in my possession; so the transactions were apparently carried out using a cloned card. That the criminals managed to clone a chip-and-PIN card and also get the PIN--despite the fact that being an IT professional myself, I am exceptionally careful about my details--raises strong suspicion that they had help from someone within the bank. I've spoken to my friends working in the security domain, and they've confirmed that such transactions are next to impossible without help from someone within the bank. And that they're witnessing a surge in these frauds happening with HDFC bank customers, raising strong suspicion about the bank's security mechanisms. As soon as I saw the SMSs in the morning, I immediately called HDFC Bank and their response initially was lackadaisical. I was given two complaint IDs--881143 and[protected]but that hardly helped. I'm a corporate "Preferred Customer" and have held this HDFC account--my salary account--for the past many years. It is plainly evident that these transactions were fraudulent and the bank's security mechanisms have been found severely lacking. Even though I had a "chip card", supposed to have extra built-in security, this incident happened to me. I contacted a few of my journalist friends and they covered my plight in five Hindi daily newspapers on February 20. Upon getting the wind of the media coverage, an HDFC official from my home HDFC branch, Barakhamba Road, New Delhi, called me and said that the money would be refunded within the next 7 days. When I followed up with him again today (Monday), he plainly refused that he had promised the money would be refunded. He'd called me from his mobile phone apparently to evade recording of the call. Isn't this in gross violation of banking norms as to how banks should communicate with their customers? Did he give a false assurance to me just so that I'd stay quiet temporarily? There are a few other pressing questions that the bank must answer: * An unbelievable number of 10 back-to-back fraudulent transactions happened within a span of 8 minutes at a rural ATM that I've never visited in my life. The bank's risk management team could not block even one of those transactions. Isn't that very suspicious and unsettling? * I am a preferred HDFC bank customer. My relationship and that of my company's with HDFC is very deep. Worldwide, the norm in such cases is to restore a "temporary" account balance immediately. Why is HDFC shirking from doing the right thing in this case despite my blemishless relationship with them? * I am tech savvy and exceptionally careful with my financial instruments. If this incident, with possible involvement of a bank insider, can happen to me, can any of the bank's customers feel that their money is safe? Banks are institutions dependant on the trust of the general public. Doesn't this incident leave customers with a huge trust deficit in HDFC bank. * My friends in the security domain have confirmed that it is impossible to clone a chip-and-PIN card without help from a bank insider. Who in the bank has abetted this crime? I have already filed a police complaint in this regard. Its copy has been duly forwarded to HDFC. I am also willing to help them with the investigation in whichever way they need help. However, I am completely not at fault in this incident and vulnerable. My hard-earned money must not be held ransom. HDFC must restore it immediately. I request you to take up this matter, in your capacity as a responsible organisation, with the HDFC headquarters and top brass. If necessary, the general public must also be made aware of the incident and the bank's attitude through the media. If you need any further details, please don't hesitate to call me. Thanks, Samartha