Which side does the government stand on bank fraud?

In order for banks to do something about fraud, they must be legally liable for the fraud. Just as in the UK and in legislation being drafted within the EU.

Article 59 of the EU Commission proposal on New regulations for payment services It says that when a consumer is manipulated by a fraudster, the bank must bear the loss, when the fraudster claims to be calling from the bank. As a reason why banks will have to bear greater responsibility than they do today, the Commission emphasizes that banks have better opportunities than consumers to put an end to fraud through technical protection measures, among other things. However, if the fraudster pretends to be from a hospital or insurance company, the bank customer will be liable for the fraud.

The European Commission's proposal is somewhat hollow, because it only returns the money to the consumer when the fraudster pretends to be a bank employee. Why the bank does not bear the loss when the fraudster claims to be calling from a hospital or insurance company seems completely incomprehensible. Fraudsters often claim to be calling from someone other than the bank. However, the EU Parliament's Economic and Currency Affairs Committee wants the regulation to provide broader loss coverage, so that the bank covers the consumer's loss even when the fraudster is tricked into becoming something other than a bank employee.

The government – regardless of whether it wants to take any initiatives of its own in terms of legislation or not – should at least tell us how the government views the proposal for new regulation of payment services. Quite simply if the government supports the line of the EU Parliament's Economic and Currency Affairs Committee on more coverage of loss in case of fraud or if the government may want to limit the right of bank customers to cover loss in case of fraud like the Commission. Suggest.

It is better for the government to support the Commission's proposal to force banks to bear financial and legal responsibility for fraud, as it has the greatest opportunity to put an end to banking fraud through appropriate technical protection measures.