Changes to the banking code could leave internet banking customers out of pocket if they have money stolen from their account and do not have up-to-date security software.
Banks currently bear the cost of online banking and card fraud, but experts predict the changes will give financial institutions a get-out-of-jail card when customers seek recompense.
“The new banking code allows the banks to further dump the cost of their problems onto customers,” said Steven Murdoch, a banking security expert at Cambridge University. “It would be one more option for them to select from.”
Online banking fraud totalled £22.6 million, according to UK payments association Apacs, while card-not-present fraud, which includes internet, phone and mail order purchases cost £290 million.
The banking code has always advised customers to use up-to-date anti-virus and firewall software, but a subtle change to the document now includes the warning that: “If you act without reasonable care, and this causes losses, you may be responsible for them.”
http://www.computershopper.co.uk/news/209955/banks-consider-passing-fraud-costs-on-to-customers.html
I have just heard on TV News earlier today that some committee in the House Of Lords has reported that Banks ‘should’ be responsible for on-line fraud.
Obviously this isn’t legally binding but it is a step in the right direction.
If banks don’t take pro-active action to stop on-line fraud then they should be responsible for any on-line fraud.
I feel sorry for the banks, the number of people who happily type their credit card details into hopelessly malware-infested computers.
I feel sorry for the banks? What am I saying? Ruthless, money grabbings b*stards!! Let them get shafted for once!
Phew! Came to my sense just in time there!!
Ruthless, money grabbings b*stards!! Let them get shafted for once!
Wishful thinking but economically not sound and very detrimental to your already ailing economy. :)
your already ailing economy.
My ailing economy? I seem to remember the ailing economy seems to involve the over-extension of the mortgage market in a certain neck of the woods, combined with everybody bricking themselves that a certain well-known figure on the world stage is planning conflagration in the middle-east as his leaving present to us all.
Frank,
Stop getting upset over nothing…
Since this article related to banks in your country, I mentioned the fact that it would adversely effect your ailing economy.
Had this article been about banks in this country, I would have made the exact statement regarding our ailing economy…
There are currently very few counties that don’t have an ailing economy. 
The reported cost of on-line fraud is if my memory serves me well is £28 million, where welfare fraud is in the region of £1 billion so a drop in the ocean by comparison.
So even if the Government were to pick up the tab for on-line fraud it is hardly going to adversely effect the economy, ailing or otherwise.
However, it would adversely effect the economy of the individuals caught by possibly their own stupidity but the Credit Card companies (the banks) already have to pick up the tab for CC fraud, I don’t see this as being any different.
At the very least they have a duty to make this fraud harder to commit, the simple fact is that the cost to them to do that would far outweigh the actual cost of the fraud.
If they do manage to pass the buck to the customer as they are no doubt hoping, then there is absolutely no incentive to do something about on-line fraud.
I totally agree.
Unfortunately when they make this fraud harder to commit, they make using bank services more difficult for legitimate users. It doesn’t need to be so. In fact the increased difficulties force people to write down passwords, that is a big security violation! A password should be easy to remember.