Banks Blame Customers for Chip and Pin Fraud – bank fraud
Consumer groups are asking for banks to change the way the handle card fraud when a customer’s pin is used after their wallet or purse has been stolen.
While banks usually reimburse fraud victims unless the customer was trying to commit fraud themselves, some banks are starting to turn down claims, saying that customers must have left a copy of the Pin in their wallet with their card.
The banking industry believes that Chip and Pin is secure, so secure in fact that if anyone breaks into your account it must have been because you acted without due care.
In cases where money has been taken from an account but not proof can be reasonably found that the customer acted negligibly, the customer is still only liable for the first £50, according to the banking code.
The UK Payments Administration agrees that bank members must abide with the code:
“The bank or card company must be able to demonstrate that the customer has either been negligent with their cards details, or that they are a knowing party to the fraud, before turning down a customer’s fraud claim.”
Cathy Neal from consumer organisation Which? also agrees that the system has some serious flaws:
“There are just too many cases like this for it to be people actually being careless. If people are saying they haven’t been careless, you have to call into question the kind of proof that they’re using.”
Chip and Pin security experts believe that there are a number of ways a fraudster could gain access to a customer’s PIN that don?t involve the customer simply writing it down and leaving it in their wallet. This includes lax security at banks and machines attached to ATMs.