PC security warning for banking online

Victims of online banking fraud who repeatedly fail to take appropriate security measures could be left out of pocket, the industry has warned.

The online banking section of the latest Banking Code from the British Bankers Association suggests banks may not always be liable when online banking fraud takes place.

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Section 12.13 of the Code says: "Unless you have acted fraudulently or without reasonable care (for example by not following the advice in section 12.9), you will not be liable for losses caused by someone else which take place through your online banking service."

Section 12.9 of the Banking Code offers advice about how to protect your online banking activities including keeping your PC secure - through up-to-date antivirus and spyware software along with a personal firewall.

A spokeswoman for UK payment association, Apacs, told silicon.com: "It's advice. Rather than putting any obligation on the customer, it's just offering advice to the customer. So it shouldn't be seen as putting a burden on them."

She added: "It's exactly what their [bank's] policy has always been. The banking practices and what they've been doing - it hasn't changed at all."

Apacs said, as with card fraud, banks still assess online banking fraud on a case by case basis. This means only people who consistently fail to take precautions could be seen by banks as liable for their losses.

The spokeswoman said: "The code doesn't place any obligation on the customer, it's there to set out what the obligations are on the banks."

Holly Marshal, business development manager of UK financial Services at Unisys said a "balance of responsibility" is needed between banks and consumers.

She said that banks, along with government and technology organisations, need to take a key role in educating consumers to make them fully aware of what they could be liable for.

But she added that customers should also be proactive in learning about the guidelines and securing their computers to protect themselves.