Account closure required after scam transaction ?

[ak95]

Recently, a friend of mine was scammed (on Telegram) and he lost around 4 lacs. (He doesn’t expect any money to be recovered so that’s a closed case)

Now the issue is … some part of transaction was done(willingly) using my bank account through UPI (My friend gave me the money back … but still … I feel stupid to even do that transaction).

I talked to a lawyer today and he told me that although my account is not compromised but since I have sent the money to a random account, there’s a very teeny tiny chance that the money could be used for terrorist activities or something illegal and the money could be traced back to me.
So to avoid any future problems I should first place a formal complaint to bank & police(already done) and then close the account.

Is closing the bank account really necessary? All my SGBs, Bonds, Dividends are linked to this account … and it will be a real pain to sort all this out.

 

[Gaara]

 

[Zacobite]

Recently, a friend of mine was scammed (on Telegram) and he lost around 4 lacs. (He doesn’t expect any money to be recovered so that’s a closed case)

Now the issue is … some part of transaction was done(willingly) using my bank account through UPI (My friend gave me the money back … but still … I feel stupid to even do that transaction).

I talked to a lawyer today and he told me that although my account is not compromised but since I have sent the money to a random account, there’s a very teeny tiny chance that the money could be used for terrorist activities or something illegal and the money could be traced back to me.
So to avoid any future problems I should first place a formal complaint to bank & police(already done) and then close the account.

Is closing the bank account really necessary? All my SGBs, Bonds, Dividends are linked to this account … and it will be a real pain to sort all this out.

You want a crowdsourced opinion on something like this? Do the right thing.. Follow the experts. advice.. SGB / Bonds / Dividends are all linked to a demat.. so only one place to chg.. demat account linking.. and MF Central for all. MFs.. v simple process.. open new account in same bank and carry on with life.. Good Luck

 

[pothi]

So to avoid any future problems I should first place a formal complaint to bank & police(already done) and then close the account.

Is closing the bank account really necessary?

Not necessary. The authorities can trace you even if you close the account. The formal complaint to the bank and police are enough. Closing the bank account may be seen as "an attempt" to destroy the evidence. Keep the account for at least next 5 years. However, don't add any more SGBs or link any further demat accounts. At the same time, prepare for the migration to another bank account. Ask the stock brokers to switch the bank linked to this account, etc. Just keep this account as dormant or as little active as possible.

 

[HumorSimpson]

Not necessary. The authorities can trace you even if you close the account. The formal complaint to the bank and police are enough. Closing the bank account may be seen as destroying the evidence. Keep the account for at least next 5 years. However, don't add any more SGBs or link any further demat accounts. At the same time, prepare for the migration to another bank account. Ask the stock brokers to switch the bank linked to this account, etc. Just keep this account as dormant or as little active as possible.

 

[Zacobite]

Not necessary. The authorities can trace you even if you close the account. The formal complaint to the bank and police are enough. Closing the bank account may be seen as destroying the evidence. Keep the account for at least next 5 years. However, don't add any more SGBs or link any further demat accounts. At the same time, prepare for the migration to another bank account. Ask the stock brokers to switch the bank linked to this account, etc. Just keep this account as dormant or as little active as possible.

its not for evidence.. its for safety of his account.. it can also be compromised ( god forbid)..bank will have all details.. why will it be evidence destroying?

 

[doraemon]

I think closing would be better
Op follow what experts say
Precaution is always better than cure bro

 

[pothi]

its not for evidence.. its for safety of his account.. it can also be compromised ( god forbid)..bank will have all details.. why will it be evidence destroying?

Safety of a bank account can be improved by multiple means. Bank account is different than a credit card where once compromised it is always compromised. With a credit card, there is no way to update the CVV and expiry date. That's why banks issue a different CC, once a particular CC is compromised (either by request or automatically). With a credit card, every transaction is recorded and stored for a long long time (by multiple vendors such as bank, Visa/MasterCard, etc). With a bank account, I am unsure how long the transactions are stored. There is a difference between tracing a transaction back to a particular bank account and seeking all transactions done in that bank account.

Just my opinion. It's basically a lawyer's call.

 

[newinnov]

Don't close your account! You have already done the needful, just keep the copies of FIR/complaints stored in digilocker or somewhere safe.
By Lawyer's logic you have to change your phone number too, as your phone number is primary link to your UPI!
When fraud happens banks advices you to close the instrument not the source or destination.
Finally, it's your call. And it wont be considered as destroying evidence even if you close.

 

[Zacobite]

Safety of a bank account can be improved by multiple means. Bank account is different than a credit card where once compromised it is always compromised. With a credit card, there is no way to update the CVV and expiry date. That's why banks issue a different CC, once a particular CC is compromised (either by request or automatically). With a credit card, every transaction is recorded and stored for a long long time (by multiple vendors such as bank, Visa/MasterCard, etc). With a bank account, I am unsure how long the transactions are stored. There is a difference between tracing a transaction back to a particular bank account and seeking all transactions done in that bank account.

Just my opinion. It's basically a lawyer's call.

sure if anything goes wrong.. he can show them this. message 🙂 Jusss kidding.. cheers.. his decision.. and this is exactly what i said right up front.. if he asks a crowd source forum. he will. get many many perspectives 🙂

 

[pothi]

There is a difference between what is legally right and what's logical. Some things are legally correct, but logically incorrect.

I've been there and was asked some tough questions that could have been avoided if I were more "open". Got out clean in the end, though.

 

[Pollex]

Imo better to delink the demat and close the account. Its not destroying evidence. Its like reporting a lost sim card. You lose all the liability of that account after closing it

 

[newinnov]

Imo better to delink the demat and close the account. Its not destroying evidence. Its like reporting a lost sim card. You lose all the liability of that account after closing it

I dont know what you intended to write, but your last sentence is utterly wrong!
A person is accountable for past transactions too, this is not a cave world!

 

[Pollex]

I dont know what you intended to write, but your last sentence is utterly wrong!
A person is accountable for past transactions too, this is not a cave world!

Which is why you report it to the police

 

[ak95]

Not necessary. The authorities can trace you even if you close the account. The formal complaint to the bank and police are enough. Closing the bank account may be seen as destroying the evidence. Keep the account for at least next 5 years. However, don't add any more SGBs or link any further demat accounts. At the same time, prepare for the migration to another bank account. Ask the stock brokers to switch the bank linked to this account, etc. Just keep this account as dormant or as little active as possible.

You want a crowdsourced opinion on something like this? Do the right thing.. Follow the experts. advice.. SGB / Bonds / Dividends are all linked to a demat.. so only one place to chg.. demat account linking.. and MF Central for all. MFs.. v simple process.. open new account in same bank and carry on with life.. Good Luck

Don't close your account! You have already done the needful, just keep the copies of FIR/complaints stored in digilocker or somewhere safe.
By Lawyer's logic you have to change your phone number too, as your phone number is primary link to your UPI!
When fraud happens banks advices you to close the instrument not the source or destination.
Finally, it's your call. And it wont be considered as destroying evidence even if you close.

Thank you everyone for the inputs.
I talked to some more people in banking sector and cybersecurity. They assured that keeping a copy of the Complaint is more than enough.

Regarding tracking… like Pothi said … their general consensus was also that there is no point of closing the account because banks preserve the data of old accounts and agencies can still track if they want to.

Note: The lawyer I talked to is my (future) divorce lawyer .. so maybe he is not an expert in financial frauds. I will find some other lawyer who has experience with these types of cases.

 

[Zacobite]

Thank you everyone for the inputs.
I talked to some more people in banking sector and cybersecurity. They assured that keeping a copy of the Complaint is more than enough.

Regarding tracking… like Pothi said … their general consensus was also that there is no point of closing the account because banks preserve the data of old accounts and agencies can still track if they want to.

Note: The lawyer I talked to is my (future) divorce lawyer .. so maybe he is not an expert in financial frauds. I will find some other lawyer who has experience with these types of cases.

future lawyer 🙂..good luck.. cheers