The advent of the internet has resulted in a whole new set of fraud related problems for the banking industry. In the past the issues resolved around, cash machines, credit cards and bounced cheques. The result, the cheque clearing process became longer. The new 2-4-6 cheque clearing rules reflect the fact that the problem with banking fraud has switched from cheques to online.

The banks in the UK have quietly passed an amendment to the online banking code that could result in less protection for their online customers. The subtle change is the incorporation of a new clause 12.13. This clause states that “Unless you have acted fraudulently or without reasonable care (for example, by not following the advice of 12.9), you will not be liable for losses caused by someone else which takes place through your online banking service..”

The escape clause for the bank is 12.9, the clause that states that you must “use up-to-date antivirus and spyware software and a personal firewall..”. The issue revolves around what is up-to-date and even what is antivirus and spyware software.

If your antivirus software is not updated ever moment then it is by its nature not up-to-date. If you only turn your PC on once a week or so then in terms of anti-virus software it would be very out dated. If you don’t own a PC but use one at work or in a cybercafé to carry out your online banking you have no control over the anti-virus software, would you still be liable for any losses from your account.

The clause is very ambiguous as the term antivirus and spyware software is very wide. It encompass a wide range of software from free downloads to the more expensive monthly subscription services. The reality is that most of this type of software struggles to keep up with the developments in online fraud. The fraudster’s test their new virus and spying tools against current software to ensure that they can gain access to the data that they require to carry out the fraud.

Are the banks simply admitting defeat and shifting the burden from their own systems to that of the consumer? You can still get home insurance without security guards at your front door but it seems as if the banks don’t want to play by the same rules. Surely it should be down to the bank to ensure that it has in place systems that maintain security. The advent of third party security keys has been an attempt to address this issue. The banking industry have managed to shift the emphasis for security onto the consumer and potential the losses as well.

Tony Heywood ©

Bounced cheques, cheque clearing, banker draft, bank giro credit, bounced cheques, cheques

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Tags: online, business, fraud, ethics, unethics

A few weeks back I had a discussion with a related cousin who I knew, but not overly well. The discussion was about if he wanted to go on a golf trip with the boys.

Now , I’ve run my share of golf trips over the years. How it usually goes is that everyone wants in the night of drinks and discussion. When it’s time to put up the deposit money, most are nowhere to be found.

Why is this? Do people not want to say no? Is it the drinks talking? Do they just want to sound cool and say they will go? Do peoples word mean anything these days?

Well, this time , I figure I’ll capitalize on my past experiences. At the first meeting my cousin states that he is 90% “in”, as long as he doesn’t have a prior work commitment. Fair enough. The next day, I call him to confirm the previous nights conversation, now that the beer cobwebs are all gone. He confirms that he is serious about going , assuming no work conflict( that was his chance to get out).

Three weeks go by. Time to get the hotel reservations and golf tee times. I call the cousin for a final confirmation. He advises he can t go…… he ‘s going to a baseball game that weekend. What?? Doesn’t sound work related to me.

So my question is .. what exactly does 90% “in” mean? Where is people’s word these days? Does it matter what they tell others? While others spend money, make plans and commitments, are they free to just change their mind, without even a care?

For my cousin, he may not think twice about it, For myself, I learned a wee bit more about his character. I also learned about his word…… and what is BEHIND IT.

My parents raised me so that if I said I was going to do something, I better darn well do it. Remember the days of business deals being done on a handshake. No contracts. Just two people giving each other their word of honor.

My word equals my character, my reputation. There is a famous quote that states that is takes years to build a good reputation, and a day to ruin it. When you think about it, your word is really all you have, so it should be used with caution, and taken very seriously.

What about you? How good is Y O U R word??

About the author:

TA Smith is the founder and creator of Smile-Therapy.com A graduate of UMASS, Amherst. A former Dale Carnegie graduate. Smith loves to golf, ski, read, walk his chocolate labs, and listen to jazz and country music. Smith’s motto: Work hard, have fun, help others and make people SMILE. Visit this site to continue reading.

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Tags: ethics, issues, business, unethics, legal