TOKYO, March 23 (UPI) -- The Japanese Bankers Association has announced that member banks will compensate all victims of bank card forgery, as long as they are not to blame.
The move comes amid mounting criticism of banks for failing to respond to such crimes, which have been increasing at a rapid pace, as well as the financial institution's opaque position regarding its compensation obligations, The Japan Times reported Wednesday.
The current rule states that banks are not responsible if an identification number punched into an automated teller machine matches that of the account, even if the card used for the transaction is forged.
The new rule stipulates that banks in principle will compensate all victims, as long as depositors are not to blame and that banks will bear the burden of proof for showing that the depositors were at fault.
Banks will also have to present examples of cases in which depositors will be held responsible for the loss of their money as a result of card fraud.
