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The Government does not support this recommendation. Imposing legislation on banks to be held liable for losses incurred as a result of electronic fraud does not seem to be the appropriate approach in ensuring that banks maintain their customer information securely. In practice, banks normally reimburse cardholders who have been genuine victims of online card fraud - however banks cannot be expected to reimburse those who have been negligent with their card and/or card details. Neither should banks be expected to reimburse cardholders who may have been complicit in the fraud.

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