Aussie banks reject PC inspections for fraud

Parents of local banks say 'no' to Kiwi internet 'Banking Code'

Australian banks will not make their customers liable for internet banking fraud or subject them to computer inspections the way their subsidiaries have in New Zealand.

"The banking sector will continue to protect customers from fraud losses related to internet banking," the ABA said in a prepared statement reported by ZDNet Australia.

"The ABA does not believe there is any reason to change the existing provisions regarding liability. The current regime protects the consumer. Account-holders are not liable for losses resulting from unauthorised transactions where it is clear that the user has not contributed to the loss.

"It is very important for our bank customers to have faith in the security of the system and for that reason we have stuck with our existing position," the statement said.

The members of the Australian Bankers Association mostly include banks that own the New Zealand banks that, as members of the New Zealand Banking Association, created the new local banking code. This code allows banks to request PC inspections in fraud cases.

The ANZ, National Australia Bank, the Commonwealth Bank and Westpac are among the Australian banks that have said they have no plans to follow New Zealand's lead.

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