Banks' new stance on ATM crime

A new willingness by banks to accept some responsibility for losses consumers suffer from auto teller crime could at last be taking shape.

This week Standard Bank became the first South African bank to announce the establishment of an ATM (automatic teller machine) centre "to ensure the fair and reasonable assessment of customers' ATM claims" - a move welcomed by Banking Adjudicator Neville Melville.

Melville said yesterday he hoped other banks would follow suite - "and they need to".

In his report for 2000, Melville reminded banks that as signatories to the new banking code, they were responsible for bearing ATM related losses "unless they were able to prove that the claimants had acted fraudulently or with gross negligence.

Banks had generally refused to accept liability for any losses arising from ATM crime, which they argued cost them more than R50-million a year by conservative estimates.

Melville's report showed complaints about ATM crime were the second highest number (after mortgage-related complaints) his office had received during the year.

Announcing the new centre this week, Mike Gibbs, head of customer relations for Standard Bank, admitted that the adjudicator's report had highlighted the inconsistency of procedures by banks for assessing ATM claims.

The report had also shown that the approach by banks to ATM crime did not put enough emphasis on customers and their needs as victims.

Gibbs described ATM crime as "probably one of the most sensitive an emotional issues" affecting relations with customers.

He said the new centre in Johannesburg would handle ATM claims telephonically. Its consultants were trained to deal with customers experiencing trauma and loss from crime. Consultants would listen to the customers an establish a trust relationship between them and the bank.

The centre would follow up with regular progress reports to customers, and findings would be made available to claimants.

Erik Larsen, manager of media relations at Standard Bank, said data gathered by the centre would indicate trends in ATM crime.

"The data will allow us to identify hot spots we need to focus on and also to warn customers via newspaper about new trends.

The center's toll free number is 0860 10 22 13, or fax (011) 636 2911, or email ATMFraudClaims@sbic.co.za.