Wednesday, July 9, 2008

UK House of Lords committee blames banks

Very interesting decision coming from a ruling body such as the UK`s Lords commitee. Someone eventually realized that in order to fight this phenomenon is better to start by adding some ownership to it.

After all it involves money - everybody`s money so they basically stress on two things:
1) Banks should be liable for all electronic fraud;
2) Reports to the police need to be made for e-fraud rather than the banks.

Examining these two points of view I would consider that the second is very appropriate while the first is a little bit exaggerated.
Banks cannot and will not be made fully liable for e-fraud as 90% of the loss in fraud related activities would have to be supported by them. While right now 90% of the e-fr is supported by the merchants.

The second would be reporting to the police which is happening in increasing numbers as opposed to previous years is a very good point the House of lords has made. This way police would be invested with the necessary power to investigate and eventually prosecute cutting down this invisible mafia that is the 21st century type of organization.

You can see the nice clip by clicking here here.

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