Compensation battle for victims of online banking fraud

Customers who are thought to have ignored safety advice and have lost money through online banking scams could face a battle for compensation with the

22:32 16 November 2004

Customers who are thought to have ignored safety advice and have lost money through online banking scams could face a battle for compensation with their banks.

The Association for Payment Clearing Services (Apacs) said banks could soon start denying consumers compensation if they believe they were sufficiently aware of fraud risks.

Apacs warned that in several years' time people will have received safety information and could face severe losses if they are found to have ignored it.

To date banks have refunded around 4.5 million to around 2,000 victims of so-called 'phishing' scams, where fraudsters attempt to persuade people to divulge personal and financial data by masquerading as banks and other large firms.

"We want to make sure customers know what types of frauds there are and how to avoid being a victim," Apacs director of corporate communications Sandra Quinn said. "While customers don't know of all the risks, the safety net exists."

But she added: "A good parallel might be with something like card fraud - if you act reasonably, you are covered."

There has been an increase in phishing scams in recent months and banks have been urging customers not to respond to unsolicited emails and never to reveal pin codes or passwords.