UK Bank Fraud Victims Could Be Held Liable Under New Proposals
Bank fraud has traditionally been the problem of banks, not customers, but according to Valery Marchuk's post on Peerlyst, that burden may be shifting
SAN FRANCISCO, June 2, 2016 /PRNewswire/ -- New bank fraud proposals by the Bank of England and other financial institutions could result in consumers being held responsible for fraud, a move that could ultimately spur more criminal activity, says cybersecurity CEO Valery Marchuk. Bank and e-commerce fraud cost British financial institutions nearly £395 million last year, but those huge costs have been traditionally borne by financial institutions, not their customers. However, with fraud growing and the stakes continuing to mount, that may be changing. Marchuk, the CEO of Cybersecurity Help, points out in a post on Peerylst (https://www.peerlyst.com) that the Bank of England and the UK government are considering passing the cost of fraud on to customers.
Logo - http://photos.prnewswire.com/prnh/20160601/374443LOGO
Under the proposals being considered, not only might the customers of financial institutions be held liable for some or all of the funds lost to fraud, the victims could be banned from using bank or credit-card services in the future. That means that people might be permanently frozen out of their accounts, even as they're forced to pay for funds siphoned out of their bank accounts, or charges that scammers racked up on their credit cards.
In Marchuk's view, the proposed change in UK fraud liability is extremely dangerous, because besides harming customers, it would help criminals: "If this practice will be widely accepted by other European countries, the amount of money stolen from bank customers' accounts will rise even more…. A single person will not be able to force a fraud investigation and the criminals will run free."
Marchuk's post—and thousands of other posts on security topics—can be found exclusively on Peerlyst:
About Peerlyst
Peerlyst is the place where information security pros go to share knowledge and build their professional reputations. With an audience of more than half a million and more than 10,000 posts by security experts, Peerlyst is the preeminent platform for spreading InfoSec news, asking a question, finding an expert, or offering product insight. For more information, email [email protected] or visit https://www.peerlyst.com.
Media Contact:
Maria Behan
650 281 7241
SOURCE Peerlyst
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article