Fergie's Tech Blog

Australia Bankers Association: Australia Safe From NZ Banking Code

Brett Winterford and Liam Tung write on ZDNet Australia:

The Australian Bankers Association says it won't be following New Zealand's lead after its Kiwi peer opted to make users of online banking held liable for Internet fraud.

Earlier this month, The New Zealand Banking Association introduced its 2007 Banking Code of Practice, which leaves customers potentially liable for losses when cheated of their funds by online fraudsters.

If customers of New Zealand banks fail to update their operating system, antivirus, firewall, anti-spyware and anti-spam, or if they fail to follow procedures outlined by the bank, they may find themselves liable if they fall victim to Internet banking fraud.

The changes also allow Kiwi banks to request access to customers' computers to verify standards have been met in cases of fraud. The code states: "If you refuse our request for access then we may refuse your claim."

posted by Fergie @ 7/10/2007 11:41:00 PM