Banks to cover client losses

A new Development Ministry bill provides for the compensation of bank customers should they become victims of electronic fraud, such as the theft and use of their debit card PIN, even if this is due to their own negligence.

The compensation will be provided subject to conditions and for amounts over 1,000 euros, as the responsibility is expected to be fully borne by the cardholder in cases where the amount is less than that.

This regulation is expected to bring relief to many customers, especially as phenomena of electronic fraud, mainly through the misappropriation of passwords (phishing), is showing an increasing trend. There is no lack of criticism of this regulation, as some quarters claim that banks will lower the limit of electronic transactions to €1,000 in order to protect themselves from people who will abuse it and seek damages.

Article 22 of the bill...