BANKS CONTINUE TO PROTECT CUSTOMERS FROM FRAUD LOSSES

ABA SUBMISSION TO ASIC ON EFT CODE 

Sydney, 6 June, 2007: The Australian Bankers’ Association (ABA) said the banking sector will continue to protect customers from fraud losses related to Internet banking.

The ABA has today lodged its submission to the Australian Securities and Investments Commission’s (ASIC) review of the Electronic Funds Transfer Code of Conduct (EFT Code).

David Bell, Chief Executive of the ABA, said: “The ABA does not believe there is any reason to change the existing provisions regarding liability.  Bank customers will continue to be protected from loss in Internet banking fraud cases. There is no change to the current liability regime being suggested by the ABA.”

The current regime protects the consumer. Account holders are not liable for losses resulting from unauthorised transactions where it is clear that the user has not contributed to the loss.

The ABA’s submission calls for the adoption of the EFT Code by other EFT market participants as it is important that all consumers are afforded the same protection that the Code offers.

Mr Bell said: “The ABA has suggested to ASIC some areas where wider uptake of the EFT Code might be encouraged to give consumers greater confidence and protection in utilisation of electronic funds transfer facilities.”

“It’s not good enough that only the banks, some other authorised deposit-taking institutions and a handful of others have done the right thing by subscribing to membership of the EFT Code. There is a much wider group of EFT facility providers who should join banks and voluntarily sign up to the high standards required under the Code.”

Finally, there is an opportunity for the EFT Code to be significantly simplified, for example with a plain language version. The ABA and its member banks will work closely with ASIC and other stakeholders to achieve this.  Removing some of the Code’s complexity would help promote its further uptake. 

The ABA and its member banks are looking forward to discussing the submission with ASIC and contributing to the consultation process on the review of the EFT Code.


For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS