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Court raises banks' liability for delayed response in mobile fraud cases
The High Court has upheld a ruling that Family Bank breached its duty of care by failing to secure a customer's account promptly, following notification of unauthorised mobile banking transactions.
Banks could face greater legal liability for delayed responses to suspected fraud after the High Court upheld a ruling that Family Bank breached its duty of care by failing to secure a customer's account promptly, following notification of unauthorised mobile banking transactions.
The court upheld a Small Claims Court decision requiring the lender to compensate a customer over fraudulent mobile banking withdrawals totalling Sh720,000, signalling that a bank's failure to act after receiving a fraud report can itself attract liability.
