S A BANKS FLOUT LAW

Well, well, well - it isn't enough that the banks charge an arm and a leg for every little thing that they may and/or may not do - now they fail to take responsibility and even go so far as to "flout" the law - seems they were above it all the time!

Regards
Nikki


Lee Rondganger July 11 2006 at 05:10AM


South African banks are flouting the country's Electronic Communication Transaction (ECT) Act - legislated to tackle cyber crime - by disclaiming liability when an online client's account is hacked into.This is according to Reinhardt Buys, an IT lawyer and expert. He said on Monday that contrary to the law, banks were not fully reimbursing clients whose banks accounts have been hacked.Buys said according to section 43 of the ECT Act the bank is liable for any damage caused to their clients."Yet almost all South African banks simply ignore these provisions and disclaim themselves from any and all liability," he said.
He says the banks hide behind their terms and conditions for Internet banking which put the onus on the client for risk or loss."Section 43(5) states that: 'The supplier (bank) must utilise a payment system that is sufficiently secure with reference to accepted technological standards at the time of the transaction and the type of transaction concerned' and section 43(6) states that: 'The supplier (bank) is liable for any damage suffered by a consumer (client) due to a failure by the supplier to comply with subsection 5.'," Buys said.He points out that Absa and Standard Bank's terms say the bank will in no event be liable for any damages.In addition, Buys said that the banks are not informing the clients about the true risks of Internet banking and are also giving their clients "tips" on Internet banking when they are actually conditions for Internet banking.Errol Smith, spokesperson for Absa, said the bank was not going to entertain Buys' accusations."We at Absa bank have sought legal advice on the Act and we can say that we provide the best possible safety measures which are endorsed by the international Lafferty Group."We do not believe we are transgressing any Act. "These allegations are far-fetched," he said.Herman Singh, director of Architecture and Technology Engineering at Standard Bank, said the matter was complex but the bank was looking into it."Standard Bank has introduced numerous security measures in the interest of its customers and the bank. The integrity of Standard Bank's Internet payment system remains intact and enjoys the highest levels of technology investment and expertise. Standard Bank online customers are encouraged to make use of the bank's online security measures to ensure they enjoy a safe and secure banking environment," he said.
o This article was originally published on page 2 of Pretoria News on July 11, 2006