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.
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:
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