UK banks want debit card fraud to be your fault

UK banks led by Santander are looking to make changes to their small print that will allow banks to block compensation to fraud victims. It’s no surprise that UK banks are looking to move the credit (refer to bootnote) and debit card fraud responsibility to customers.

What this means is, if you use a weak i.e. PIN 2345 or fail to shield your PIN while using an ATM machine, you will be liable if your card is lost and or stolen and used to commit fraud. In this instance banks should issue more secure PINs to customers, rather than relying on customers creating their PINs. Some European banks already do this.

For those that don’t know some ATM’s use cameras to monitor usage of their machines, but they are also used to protect customers. Santander is one such bank that is wanting other banks to follow them by changing their terms and conditions ( regarding how you the customer use your four-digit PIN.  Check out the Santander T&Cs amend  – 9.7 (k) which requires you “to take reasonable steps to keep your PIN or Personal Security Details unique to the accounts that you hold with us.” The changes also affect your mobile device if it is stolen and then used to access your bank account. In some instances people store their account numbers and PINS in unsecured text files as well as use mobile banking apps.

Banks and credit card companies have been mounting fraud losses now for some years, mainly from Card Not Present (CNP) and Card Fraud Abroad (CBA) where the PIN and CVV code (the 3 digits on the back of the card) isn’t required to complete a transaction. My personal opinion for years has been, the banks will eventually consider charging their account holders a monthly identity fraud insurance. This isn’t a case of if but when. Another option for banks to consider might be pass pattern technology – much easier to remember a pattern and impossible to shoulder surf.

TIP: Ask your bank to place a monthly limit on how much you can withdraw from an ATM or when using online banking. Fraudsters although aware of this, realize most consumers don’t know they can set this up.

Safe surfing folks!

Bootnote: Section 75 of the UK Consumer Credit Act 1974 protects consumers on any credit card purchases (this includes loss or theft) which cost over £100 and under £30,000. Note: This also applies when someone else fraudulently uses your credit card i.e. Chip & Pin fraud, Card Not Present (CNP) fraud etc.

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