Thai court rules banks must prove credit card fraud, not customers
Thailand’s Supreme Court has ruled that banks, not customers, must prove who authorised disputed credit card transactions, setting a legal precedent that strengthens consumer protection against cyber scams.
The case, Supreme Court ruling No. 2624/2568, began when a bank sued a customer over charges made on their credit card without the cardholder’s knowledge or consent. The customer denied making the transactions, stating their card had been hacked or cloned, while the bank argued that the cardholder was still liable under the terms of the credit card agreement, which typically holds users responsible for all activity.
The Supreme Court rejected the bank’s claim, ruling that it is the bank’s responsibility, not the customer’s, to prove who authorised the disputed transactions. Because banks design, operate, and profit from credit card systems, the court found they must also bear the burden of verifying identity in the event of fraud.
A transaction record alone, the court added, is not enough to assume a customer authorised the charge. Without additional evidence, such as verified identity checks or proof of gross negligence, banks cannot shift the financial impact of cybercrime onto customers.
As a result, the court dismissed the case and relieved the customer of any repayment obligation.
Legal experts in consumer protection have welcomed the decision, calling it an important moment that strengthens protections for the public in an era of rising cybercrime. They say the ruling will force financial institutions to invest in stronger authentication processes and data security measures, rather than putting all the responsibility onto consumers.
In an earlier credit card scam case, a Thai man lost nearly 70,000 baht from his credit card balance after a scammer created a fake ID card, gained access to his mobile phone number, and accessed his credit card. The victim stated that he could not fathom how his personal information ended up in the hands of the scammer, as he had never lost his ID card or credit card before.
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