KEY POINTS:
Better protection for users of internet banking services is expected under revisions to the banking industry's Code of Banking Practice.
InternetNZ (Internet Society of New Zealand) deputy executive director Jordan Carter said his organisation had been concerned that the code put an unfair burden of responsibility on internet banking users, tilting the playing field in favour of the banks to an excessive degree.
InternetNZ had suggested several clauses in the internet banking section of the code be amended to improve the safety of using internet banking services, Carter said.
The changes related to user liability for unauthorised transactions, the use of secure password facilities and up-to-date computer security software.
InternetNZ had also suggested the code be re-worded to clear up privacy concerns relating to the right of banks to access users' home computers, he said.
"They (the New Zealand Bankers Association) have taken account of our concerns, resulting in a revised code that better protects the interests of users of internet banking services.
"We are particularly pleased that the reference in the code to banks reserving the right to request access to people's computers to verify protective systems has been removed."
It was also pleasing that the revised code affirmed as a "guiding principle" that banks would reimburse genuine victims of internet banking fraud.
The new code, prepared by the bankers association, would come into effect tomorrow, and followed banking industry consultation with internetNZ and advocacy group Consumer NZ.
- NZPA
