New ruling makes compensation easier for victims of bank impersonation fraud

Kifid has introduced stricter standards for banks handling cases of helpdesk fraud, making it easier for consumers to receive reimbursement for their losses. Even if a customer has been careless, they may still be eligible for compensation.

The Appeals Committee of Kifid says that “gross negligence” only exists when a consumer realizes they could be dealing with bank helpdesk fraud, but still follows instructions from a supposed bank employee.

In practice, victims are often so convincingly misled that they genuinely believe they are speaking with their bank, the committee notes. As a result, it concludes that gross negligence will rarely apply in these cases, according to a decision released Thursday.

This decision raises the bar for what is considered “gross negligence” compared with an earlier ruling by the appeals committee.

Kifid based its ruling on a case involving a consumer with an account at online bank bunq, who received a phishing email that appeared to come from her bank. In this case, the bank pointed out that it continuously sends warnings to customers about bank helpdesk fraud. Nevertheless, the consumer followed instructions from the fraudster.

“This does not mean, however, that the consumer acted with gross negligence,” the Appeals Committee said. “A defining feature of bank helpdesk fraud is that consumers are manipulated in such a way that they believe they are dealing with a genuine bank employee. This consumer was not aware of any danger,” the institute concluded.

A spokesperson for the Nederlandse Vereniging van Banken says the organization cannot yet respond in detail. “We first need to review the ruling.”