For cybercrime victims, the battle does not end with reporting the fraud — it often only begins. Even after months of waiting and following due process, getting their money back frequently turns into a frustrating second ordeal marked by delays, paperwork, and procedural roadblocks.
While a small number of victims eventually receive refunds, the path to recovery is anything but smooth. Victims who are informed through the National Cybercrime Reporting Portal (NCRP) that their money has been frozen in an accused's bank account often see their initial relief fade as they navigate a complex and inconsistent system.
NOC Requirement from Multiple Police Stations
One of the most persistent hurdles is the demand from banks for a no-objection certificate (NOC) from multiple police stations across the country. This requirement arises when the same bank account linked to the accused is involved in cases registered in different states. Despite the frozen amount being unrelated to other victims' transactions, banks frequently insist on NOCs from all jurisdictions concerned before processing any refund.
"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 state cyber crime police official explained.
Victims' Experiences
Victims say the requirement creates an additional 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 attempt to secure these NOCs, they often hit a dead end. Police in other states may refuse to issue the NOCs, leaving victims stuck. In several cases, banks refuse to proceed without these documents, effectively halting the refund process.
"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," sources in cybercrime police said. For victims who lost smaller amounts—often under ₹10,000—the effort and cost of chasing authorities across states makes recovery impractical.
Court Orders and Partial Refunds
The challenges persist even when victims obtain court orders directing banks to release refunds. Banks often forward 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 another case, victims say even partial recovery is uncertain. "Cyberabad cybercrime police informed a victim, who lost money in an investment fraud, that his money would be refunded in Lok Adalat. But through this process, he received only a partial payment of a few lakhs out of the total 16 lakh he lost. The remaining money was frozen in two different banks in Chennai, and the banks were not keen to release it as there were several claimants. After pursuing the issue for more than six months, he only got a portion and his struggle continues," a Hyderabad-based software professional said.
Even after clearing all hurdles, victims face uncertainty over whether they will receive the full amount or only a partial refund. In Telangana, 399 crore has been refunded to 53,434 victims since the creation of the Telangana Cyber Security Bureau, with annual refund figures steadily rising.
"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," a TGCSB official said.
