Court rules in bank’s favour in “phantom withdrawal” case
by Gill Montia
A UK court has found against a customer who sued his bank after being held liable for withdrawals from cash machines, which he claims he did not make.
So called “phantom” withdrawals occur when money is withdrawn at bank ATMs without the card holder’s permission and where card details have not been revealed to third parties.
Chip and PIN technology has been designed to prevent stolen and lost cards being used in this way but Halifax customer, Alain Job, claimed that he was not responsible for £2,100 disappearing from his account.
However, Mr Job failed to convince Nottingham County Court that his card could have been used to withdraw the money at ATM’s without any negligence on his part.
Lawyers argued that the card could have been cloned but Halifax produced evidence that it claimed showed Mr Job’s original card had been used in the transactions.
IT experts appear to differ over whether cloned cards can be used in this way and Mr Job is reported to be considering an appeal.