Banks wear losses from card skimming
The Australian Bankers' Association (ABA) is assuring customers they are not liable for unauthorized transactions on their accounts when they become victims of skimming crimes. Skimming is the unauthorized copying of information stored on the magnetic strip of debit and credit cards.
This information is often used by criminals to withdraw cash from ATMs, or create a counterfeit card, which is then used for fraudulent transactions in retail outlets or on the Internet or at ATMs.Criminals generally use two methods to skim cards. Firstly, they use card readers or a skimming device that resembles a pager at the point of sale. In other cases, a device and a hidden camera is attached to an ATM which captures information from the cards' magnetic stripes and PIN entries.If a bank or the police identifies skimming has occurred, then the customer will not be responsible for any related fraudulent transactions on their account/s.
David Bell, Chief Executive of the ABA, said: "When skimming is suspected, banks will conduct an investigation and funds are restored to customers – the innocent victims of this crime. In other words, the bank wears the loss."
Source : Australian Bankers Association