The Electronic Funds Transfer Code of Conduct (EFT Code) comes into force on April 1, 2002, and aims to make Internet banking safer for consumers.
According to Leif Gamertsfelder, head of the e-security group at Deacons lawyers, the Code brings two main benefits to the Australian consumer. -It gives the consumer an extremely clear understanding of when they are liable and when institutions are liable" for unauthorised account transactions, he said. -We have to make it abundantly clear where the consumer stands."
The second benefit, which he describes as a -huge bonus for consumers", is that in the event of a dispute the Code puts the evidentiary onus on the institution. This forces the financial institution to come up with evidence rather than the consumer who is -generally under-resourced and fighting very big players". It puts the consumer -in the box seat," Gamertsfelder told ZDNet Australia.
The EFT Code will also diminish one of the major concerns of online bankers - that a hacker will exploit a security vulnerability and steal their stash - as consumers will not be liable for any losses where it is clear that they are not responsible for unauthorised transactions.
"These are very big wins for the consumer," Gamertsfelder said.
Although the Code is something that institutions can sign up to on a voluntary basis, Gamertsfelder stressed that most major players will need to sign up to the code if they are to continue certain clearing operations. "Others don't strictly have to sign up, there's no leverage there to make them do so, but it's in their best interest to do so from a marketing perspective," he added.
An Australian initiative, EFT Code was born out of the Federal Treasurer's request in April 1999 that the Australian Securities and Investment Commission set up a working group to revise the current code - which only really applies to ATMs.
"There's no precedent for this in Australia or elsewhere," Gamertsfelder said. -It's not implicit, it's making everything very explicit for the consumer to say this is a safe zone."
-The new EFT Code should be the catalyst for the rapid uptake of electronic banking in this country because from a realistic perspective the risks have been taken out of the online banking equation."
