What Legal Strategies Can You Use To Recover Money In Case Of Fraudulent Transactions?

Well-established fraudulent transactions are too serious for individuals and businesses as well. Cyber fraud is cementing its position further wide as more and more transactions are conducted online. In India, the legal system has provisions available for redressal in any case of fraudulently executed financial activity. Recovering money lost in fraudulent actions is a little painstaking and consists of many steps, beginning from filing complaints, following it up with authorities, and lastly a legal remedy.

Fraudulent Transactions: About

• Fraudulent transaction is an activity where a person or a company cheat another of money or property through misrepresentation or otherwise concealment of material facts. 
• Fraudulent transactions may take many forms, ranging from identity theft, phishing, unauthorized access to bank accounts, or some sort of online fraud. 
• Whether it is an online purchase done with stolen details of a credit card or an investment scheme believed to be a scam, those duped mostly lose finances worth thousands of dollars.

Legal Strategies to Recover Money in Case of Fraudulent Transactions

Reporting the Fraud to the Bank or Financial Institution:

• The immediate and first action that a person should take once they realize that there has been a fraud transaction is to inform the bank or the financial institution involved. 
• Most banks have fraud hotlines or online systems through which a user can report any fraudulent activity. It is very essential to alert the bank of an unauthorized transaction because it can freeze this transaction or block any future withdrawals.
• Fraud investigators will usually conduct an investigation by determining whether the transaction was genuine such as contacting law enforcement where it becomes necessary. 
• When a bank is not moving fast enough in addressing the matter and it shows signs that it will do something in the future, the next thing one can do is to report the matter to a government regulatory agency or take legal action against the bank.

Filing a Complaint with Law Enforcement Authorities:

• Fraudulent transactions can be report to law enforcement in India, specifically under BNS sections pertaining to cheating, fraud, and criminal breach of trust. 
• Cheating related to Section 318 BNS is the common heads under which cases of fraudulent activities are register. Therefore, the victim may file the FIR at the local police station; thereafter, the investigation will proceed as per police records and on further pursuit in a court case.
• In cases of online fraud or cybercrime, the victim may also go to the Cyber Crime Cell. The Ministry of Home Affairs, Government of India, launched a portal at the national level for citizens to report cybercrimes to the National Cyber Crime Reporting Portal, including financial frauds.

Engaging in Civil Litigation for Financial Recovery:

• The Contract Act of 1872 provides for the filing of a civil suit if a person’s contract has been breach due to fraud. In such circumstances, the court shall order compensation for the amount lost in the fraudulent transaction and may also include interest and costs for litigation. To succeed in their case, the victim must show evidence that proves the fraud, which may include transaction records, conversations with the fraudster, or receipts showing the unauthorized access to his accounts.
• In addition, the Consumer Protection Act, 2019, provides another mechanism to consumers who, in fact, became victims of fraudulent transactions in goods or services. Under this Act, the aggrieved person may file a complaint with the Consumer Disputes Redressal Commission, which can award the victim compensation for the loss incurred and order the fraudster to return the money.

Utilizing Online Dispute Resolution Platforms:

• India has been observing a gradual rise of online dispute resolution (ODR) platforms over some years, which are increasingly being touch as an alternative mechanism for resolving complaints such as those relating to financial fraud. 
• These platforms resolve the disputes in a manner that eliminates the long drawn legal and judicial procedures. 
• Thus, a victim of a fraud would be able to approach a neutral third party (arbitrator or mediator) by employing an ODR platform and getting him or her to help resolve the dispute with the cheating party.

Filing a Complaint with the Financial Ombudsman or the SEBI:

• In case of any fraud related to investments or financial products that directly relate to the securities market, victims can approach the Securities and Exchange Board of India (SEBI). SEBI is the apex body that regulates the securities market in India and has created a forum known as Securities Adjudication and Appellate Tribunal (SAT) to adjudicate any disputes regarding fraud in securities markets.
• In such cases that involve either misrepresentation, insider trading, or market manipulation, complaints can be make to SEBI. SEBI has a specific grievance website for filing a grievance, which may take corrective action or direct the wrong-doer to the victim’s compensation.

Recovery through Law Firms:

• It might happen that the victim uses private detectives or law firms specializing in financial fraud to locate the culprit. 
• These can be use to gather extra evidence for the prosecution like IP addresses, phone records, or transaction details. They can also help victims find their way around the legal system and take the correct steps toward recovery.

Seeking Redress through Consumer Protection Laws:

• Under the Consumer Protection Act, 2019, a victim can approach the Consumer Court if the fraudulent transaction includes sales of defective products, substandard services, or misleading advertisements. 
• This act secures consumer rights and ensures that they shall be adequately compensate from damages cause by fraudulent sellers or service providers.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtain at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.