Allocation of Liability for Bank Card Theft

Abstract

The Supreme Court issued a new judicial interpretation on bank card theft in May 2021, which determined the no-fault liability of banks in the phenomenon of bank card theft. However, although the interpretation is based on the position of protecting financial consumers, it does not take into account the type of cardholder, the difference between counterfeit card theft and cyber theft. Through differentiate between Small-value electronic fund transfers and large-value electronic fund transfers, cyber theft, a new mechanism for allocating responsibility should be constructed for cyber-skimming of bank card unit accounts: if the bank's payment instructions have passed the security procedures, the cardholder bears the presumption of liability for fault, thus providing banks with an outlet for exemption from liability.