Even after reporting fraud and following due process, many cybercrime victims continue to face long delays and complex procedures when trying to recover their money. What should be a relief often turns into another challenge filled with paperwork and uncertainty.
Victims who are informed through the National Cybercrime Reporting Portal (NCRP) that their funds have been frozen in an accused’s bank account often struggle to get refunds. One major issue is banks asking for a no-objection certificate (NOC) from multiple police stations across different states. This usually happens when the same account is linked to cases in various regions, even if the frozen money is unrelated.
“Acting on a Hyderabad-based victim’s complaint, money already transferred to a bank account belonging to the accused is frozen by banks on the directions of the NCRP.
However, when the complainant approaches the bank seeking a refund, the real hassle begins,” a cybercrime police official said.
Victims say this process adds to their burden. “Recently I placed money in an investment fraud and received 4,000 from an individual account. Minutes later, 4,000 was put on lien by the banker. When I contacted the bank and Cyberabad police, they asked me to approach Maharashtra police and obtain a NOC, since the money transferred is linked to a Maharashtra case. I draw a very low salary, so 4,000 is significant for me. But visiting Maharashtra costs me more than the effort to get the NOC,” a 25-year-old IT professional said.
Even when victims try to obtain NOCs, they often face refusal from authorities in other states. Without these documents, banks may stop the refund process entirely. “In the absence of NOCs, some banks are not even entertaining any further discussion. As a result, it’s a double-whammy for cybercrime victims,” police sources said.
Court orders do not always resolve the issue. Banks often send such orders to their legal teams, causing further delays. “The banks are expected to release the refund on first-come, first-served basis. Whoever gets the court order first, his refund is expected to be proceeded first. The bankers are referring the court orders to the banks’ legal team, which again is delaying the refund process,” an investigator said.
In some cases, only partial recovery is possible. A victim who lost 16 lakh received only a few lakhs after more than 6 months, while the remaining funds stayed frozen across 2 banks due to multiple claims.
In Telangana, ₹399 crore has been refunded to 53,434 victims so far, but officials admit the system needs improvement. “For the victims who lost more than 1 lakh, if the money is frozen, we are talking to banks by holding meetings with their representatives. The refund procedure needs further streamlining and make it hassle-free,” an official said.
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