UAE Banks and Credit Card Fraud Refunds
UAE: Will Banks Refund Customers in Fraud Cases?
In the United Arab Emirates, any crime related to e-payment systems, including credit card or e-money fraud, can carry serious legal consequences. Individuals involved in such cases can face imprisonment or fines up to 2 million dirhams. But what happens if someone becomes a victim of credit card fraud, and the bank claims the customer was at fault? Will the bank refund the money? In this article, we explore the options available to victims and what the laws say about such cases.
Legal Background: What Constitutes a Crime?
The UAE has implemented strict laws to protect credit card and e-payment systems. These crimes are governed by Federal Decree Law No. 34 of 2021 concerning cyberattacks and cybercrime. According to Article 15, Paragraph (2) of the law, a crime is committed by anyone who:
a. Forges, clones, or replicates a credit card, debit card, or e-payment tool.
b. Obtains data from these tools without authorization.
Penalties for such crimes can range from a minimum of 200,000 dirhams to 2 million dirhams, along with imprisonment.
What Happens If the Customer Made a Mistake?
If a customer makes an error, such as providing credit card information on an untrustworthy website, banks often cite customer responsibility and may not refund the loss. This is particularly likely if the transaction occurred with the customer's own authentication (e.g., SMS code or biometric verification). In such cases, the bank may argue that the customer did not take all necessary steps to secure their data.
However, customers still have the option to take legal action if they believe they are not solely responsible for what happened.
Legal Options
1. Filing a Complaint with the Bank
If the bank concludes that the customer made a mistake after an investigation, the victim can appeal. It is important to detail why the bank's decision is considered unjust in the appeal, for example, if they can demonstrate the website was deceptive.
2. Reporting to Authorities
The UAE authorities take a strict stance against cybercrime. The victim can report the incident to the local police's cybercrime department. If it is proven that fraudsters committed the crime, the authorities may initiate criminal proceedings against them.
3. Filing a Civil Suit
The victim can also file a civil lawsuit if they believe the bank was negligent, such as not providing adequate protection for the customer's data. The court can examine whether the bank took all necessary measures to ensure security.
How Can Fraud Be Prevented?
To ensure customer safety, UAE banks offer several measures. These include SMS notifications for each transaction, two-factor authentication, and transaction limits controlled by customers. Customers should also be vigilant about the following:
a. Provide credit card details only on official websites or apps.
b. Do not click on links in suspicious emails or messages.
c. Regularly check banking transactions and promptly report any suspicious activity.
Conclusion
Victims of credit card fraud in the UAE can expect significant protection, especially if the fraudsters broke the law. However, if the fraud occurred due to the customer's error, recovering the money might be more challenging. To avoid such scenarios, it is crucial to maintain the security of financial information. If fraud does occur, legal assistance can be sought through the bank, authorities, or even the courts.
