Card Fraud

Under the Payment Services Regulations 2017, authorization is a formal concept completed when the agreed procedure for payment is executed, and consent does not require awareness of transaction specifics or lack of impairment.

A bank may reasonably restrict account access and require payment pre-approval when it has genuine fraud concerns about a customer, provided such restrictions are proportionate and comply with account terms.

Banks are not liable for authorised card payments made by customers who have been duped into making them, unless the bank failed to act on information that ought reasonably to alert a prudent banker to potential fraud.

Banks must protect customers from fraud through adequate monitoring and checks, but customers must also exercise reasonable caution and bear some responsibility when warning signs are present.

A bank must process authorised payments, and a customer is presumed liable unless the bank should have identified a scam risk through additional checks or warnings.

A bank must provide proportionate intervention for suspicious payments, but is not liable for losses that such intervention would not have prevented, particularly where the customer actively evaded fraud checks from other firms.