Analysis Of Legal Issues In Cases Of Bank Cards’ Fraudulent Use

In recent years, with the promotion and development of banking business, bankcards are in an increasing use and a cardholder can carry out activities of deposition,remittance, transfer and payment with a bank card in hand. This kind of financialservice brings convenience to cardholders and also constitutes one important part ofbanking business. However, due to the technical problems, there are risks in bankcard business and the fraudulent use of bank cards is one of them. The persons whomake such fraudulent use obtain the real bank cards or passwords and use real cardsor forgery cards to withdraw money or make payments unlawfully. Unfortunately,the existing laws lack related defined provisions, which makes the practical issuescannot be appropriately solved, including the issue of unfair responsibility shift,banks’ obligation of payment, banks’ duty of care, the provision of loss reporting andstopping payment and other issues, and leads to problems in judicial process. Withthe development of theory of financial consumers, how to maintain the bankconsumers’ legitimate rights and interests becomes an important factor in judicialconsiderations.This paper analyzes the existing cases of bank cards’ fraudulent use and makesresearches from the perspective of financial consumer theory. Firstly, this paperbegins with a real case of bank cards’ fraudulent use to point out the theme of the paper, analyzes the legal relationships in bank cards business, especially from theperspective of financial customer and defines the basic concept of bank cards’fraudulent use; secondly, this paper discusses the challenges the cases of bank cards’fraudulent use bring against the existing judicial practice, summarizes the legalissues reflected in judicial cases, and finds out that the reason for these issues is thedefects in legislation and the root is the absence of financial customer protectionsystem; thirdly, this paper discusses that under the circumstances when thelegislation is not explicitly defined the judicial practice should integrate financialconsumer theory with traditional laws; finally, this paper, by researching theexperience of countries and regions which have well-developed banking business,points out that on the one hand we should develop a specified law to regulate bankcards business and the American’s “Electronic Fund Transfer Act” is a good example,and on the other hand, the content of this law should include the introduction ofelectronic funds transfer system, rights and obligations of the parties, the principlesand limits set of responsibilities to establish China’s banking customer protectionsystem.