UAE banks do not provide compensation for card hacking incidents during travel

Asma Ahmed - | UAE

Experts in the banking industry stress the importance of customers being careful with their money while they travel.

Banking Security Measures and Customer Responsibilities

Two banking professionals emphasized the importance of customers safeguarding their card and bank account information, especially while traveling abroad. They clarified that banks do not accept responsibility for losses resulting from customer negligence or unauthorized transactions, and they do not provide compensation in such cases. Even if customers inform their banks about their travel plans, including departure and return dates and their location abroad, this does not shift liability away from the customer for failing to secure their banking details adequately.

Taimur Al-Mashjari, Vice President at RAK Bank, underscored the customer's responsibility in protecting their banking information and cautioned against sharing sensitive data based on trust. He highlighted that the same precautions applied within the country should be heightened during international travel. Specifically, he pointed out that banks do not assume liability for losses due to actions like entering one-time passwords sent via SMS or email from the bank or making transactions on unreliable websites without verifying their credibility, especially for online purchases.

Customer Guidelines

Regarding the bank's responsibility, Al-Mashjari clarified that compensation is only provided for losses arising from deficiencies in the bank's security systems or internal information leaks. In such cases, affected customers are reimbursed. However, banks do not compensate for losses attributed to customer negligence, regardless of whether travel details were communicated to the bank.

Similarly, another banker, Mustafa Ahmed, stressed that informing the bank about travel plans does not absolve customers of their responsibility to safeguard their cards and accounts from hacking attempts. He emphasized that customers should avoid using cards without security features like passwords and exercise caution when making online purchases.

If a customer experiences a hacking incident while abroad, Ahmed advises them to immediately contact the bank using the designated international contact number. The customer should request card closure or account freeze and provide details of the incident through a specified form for the bank's investigation. However, he noted that if the transactions were conducted through unknown or untraceable entities, recovery options could be limited, and customers may need to involve local authorities for further assistance.

However, both bankers reiterated that banks do not offer compensation for losses resulting from customer negligence, even if travel details were disclosed. They emphasized the importance of customers taking proactive measures to protect their financial information, both domestically and especially while traveling internationally.

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Asma Ahmed
Asma Ahmed
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