Khaleej Times, Sunday, Aug 28, 2022 | Safar 1, 1444
Will my bank compensate me for money lost in scam call?
Question: I lost some money from my bank account after responding to scammers.
Is the bank liable to return the cash to me? If not, what options do I have to
recover the lost money?
Response: Pursuant to your queries, the provisions of the Consumer
Protection Regulation issued by the Central Bank of UAE through its Circular No.
8 of 2020 to all licensed Financial Institutions in the UAE (the 'Consumer
Protection Regulation of Financial Institutions') are applicable.
In the UAE, financial institutions — especially banks — are obligated to create
awareness about financial crimes among customers and public. This is in
accordance with Clause 126.96.36.199 of the Consumer Protection Regulations of
Financial Institutions, which states: "Licensed financial institutions must
demonstrate they have carried out sufficient consumer awareness activities
related to educating consumers of the need to protect themselves from financial
Financial institutions are not liable to pay compensation for losses arising out
of crimes if it is due to gross negligence or fraudulent behaviour of the
customers. This is in accordance with Clause 188.8.131.52 of the Consumer Protection
Regulations of Financial Institutions, which states: "Licensed financial
institutions must compensate consumers in a timely manner for financial losses
and expenses resulting from financial crimes, misappropriation, cyber-attacks
and misuse of assets and information unless it can be proven that the loss was
due to the gross negligence or fraudulent behaviour of the consumers."
Based on the aforementioned provisions of law, since the money was lost due to
your negligence, you would not be entitled to claim any sort of compensation
from your bank.
It is assumed that you have lost money due to a financial crime which occurred
due to your negligence. You may have to initially alert your bank related to the
financial crime and request the bank to block your payment cards (debit or
credit cards) and you may immediately change the passwords of your online
banking system. Thereafter, it is recommended that you approach the branch of
your bank where you have the bank account/credit card facility to file a formal
complaint. The bank may then undertake relevant investigations on the financial
crime and respond to you.
Once the aforesaid procedures are completed, you may have to file a police
complaint. You may have to submit details of the amount you lost, relevant
messages and call history on your phone. In the event you feel that your
complaint is not resolved by your bank, you may approach the Central Bank of UAE
to report the matter.