Monday, September 17, 2007
( 10:01 AM ) Andy
Zero-Loss Guarantee for Online Banking Customers
Obviously New Zealand banking laws will differ from that in the United States. But I don't think the customer's expectations will differ that much. In New Zealand, a customers liability from online fraud is greater when they are not using up to date software. How would the bank know? They have the right to inspect it. Somehow I see many cries over privacy if that is enforced, at least here in the states.
Westpac Bank has openly said it will not inspect its customers computers for up to date software. More to the point, they have a new "promise to pay" guarantee for their online customers. Stu Woollett , Westpac's E-business head, said their customers would always be reimbursed for fraudulent transactions as long they were not knowingly using a computer that was loaded with malicious software, they didn't leave their computer unattended or share or write down their passwords.
Those customers will obviously see less risk when they bank online. One would hope that customers would act prudently and keep software up to date. While so much of this seems like common sense, I would be afraid that the losses would be like many Reg E claim on steroids. Good for the customer, but it scares me just the same. #