Banks’ responsibility in failure to protect clients’ money, in cases of payment card fraud

Abstract

The development of E-banking caused a degradation of personal relationship between banks and clients. In addition to technological development in a field of banking created a huge set of opportunities for fraudulent schemes. Bank possess lack of power and willingness to protect client’s funds from the criminals, even it is one of the main missions of banks since the beginning of banking institute itself. Criminals crate schemes of scams by using human engendering schemes and gaps in bank’s security system. However level of bank’s responsibility in such cases is purely determined. This research is a combination of no-empirical and empirical, as in addition to legal analysis it analyse personal experience of individuals becoming victims of payment card fraud. Research focuses on already existing legislation of the Republic of Latvia, analyses schemes of payment card scams and existing mechanisms of fraud prevention. Author tries to analyse measures taken, and determine rights of the client in case of becoming victim of payment card fraud.