Caveat Emptor When Using
Online Banking Services
in Costa Rica
Caveat Emptor or buyer
beware is best when
using online banking
service in Costa Rica,
as local banks offer
services that are
unacceptable in
developed countries, as
there is no law or
institution that
protects clients from
electronic fraud and the
banks have denied any
liability in most cases.
Unlike in other
countries, Costa Rican
banks have denied
reimbursing clients who
are victims of online
fraud, leaving their
clients unprotected and
in many cases being
blamed for allowing
themselves to become
victims.
In the United States and
Canada, for example,
victims of online bank
fraud are protected by
banking laws that can
force banks to reimburse
their customers unless
they can prove that the
client acted
fraudulently or careless
using the banks online
services.
Costa Rican banks,
especially the state
banks - Banco de Costa
Rica, Banco Nacional and
the Banco Popular - all
claim to meet
international standards
for online banking
security. However, in
fact, the security
measures go only as far
to identify the online
login.
Once in, security is
minimal.
To date there are more
than 500 complaints for
electronic fraud file
with judicial
authorities that amount
to more than ¢800
million colones (us$1.6
million dollars) in
losses.
Adding insult to injury,
in most of the cases,
the bank is blaming the
client for the loss, and
as such are denying
compensating their
customers.
The president of the
Asociación Bancaria
Costarricense (Costa
Rican banking
association), Mario
Castillo, said that the
banks cannot be held
liable for something
that they are not
responsible for, citing
the lack of legislation
to cover online banking
fraud and the his
association is willing
to work with any future
legislation.
Worse yet, the
Superintendencia de
Entidades Financieras (Sugef)
- banking regulator -
says it has no power to
intervene in the matter.
The Sugef position was
made clear by the
superintendent of banks,
Óscar Rodríguez.
Critics say that the
lack of legislation is
no excuse for banks to
act irresponsibly with
their clients and that a
law should be created to
protect customers of
bank similar to that of
other countries, citing
the United States as the
example.
Rodríguez said that it
would be a powerful
incentive for the banks
to elevate their level
of security, adding that
some banks say they are
prepared but cannot
discuss their security
measures in detail.
Currently, banks in
Costa Rica require only
a login and a password
to access an account.
Once the used is logged
in there are few
restrictions on the
movement in the account.
Some banks, like the
HSBC, the BAC San José
and the Banco de Costa
Rica (BCR) offer
additional security for
the login process, but
as an option and usually
at a cost.
The BCR for example
offer the "clave
dinámica" and the BAC an
electronic key, a USB
device that has to be
plugged into the
computer to login and
enable financial
transactions.
Mario Rivera, a manager
with the BCR, said that
of the actual 25.000
clave dinámica customers
none have suffered a
financial loss.
The biggest of the
private banks,
Scotiabank, says it is
working on introducing a
similar system. Luis
Lieberman, president of
Scotiabank Costa Rica
said that a "secondary"
security measure will be
available to its
customers in the near
future.
For the time being
online banking customers
must beware of the
dangers of using online
banking and especially
with the use of the
Sistema Nacional de
Pagos Electrónicos (Sinpe)
- a system offered by
the Banco Central de
Costa Rica (BCCR) - that
allows the transfer of
funds to and from
different banking
institutions.
Customers of online
banking should keep
their login and
passwords protected and
regularly monitor their
account and report any
unusual or fraudulent
activity to their bank
as soon as possible.
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