In early September 2024, David travelled to Vietnam and placed his bag in the aircraft’s overhead compartment. Upon arrival, he discovered that the bag had been opened and that an envelope containing cash was missing. However, he did not realise at the time that his credit card had also been removed.

He became aware of the loss on 12 September 2024 after reviewing his online statement and immediately reported the matter to ABC Bank, disputing three transactions amounting to RM24,954.83.

David maintained that the transactions were unauthorised and inconsistent with his usual spending pattern. He argued that ABC Bank ought to have contacted him prior to approving them. He acknowledged, however, that he rarely answers calls while overseas and had not activated international roaming.

ABC Bank rejected the dispute, stating that the transactions were conducted in person using the genuine card and that the cardholder had failed to safeguard it.

FINDINGS

Three card-present transactions totalling RM24,954.83 were carried out using the genuine EMV chip credit card with signature verification (without PIN authentication).

The SMS transaction alerts were sent to David’s registered mobile number. However, he stated that he did not receive them as he had not activated roaming services. ABC Bank detected unusual activity and blocked the card on 7 September 2024 at 9:36 pm. The formal report of the lost card was received only on 12 September 2024.

David did not check for the presence of his credit card immediately after noticing his bag had been tampered with and cash was missing. As a result of the delay, the stolen card remained at risk for longer, giving the thief extra time to carry out unauthorised transactions before preventive steps were taken.

Under the Credit Card Agreement, cardholders are required to exercise reasonable care in safeguarding their cards. Leaving the card unattended in an overhead compartment created a foreseeable risk of theft.

OUTCOME

The disputed transactions were conducted using the physical card, and ABC Bank had no prior indication of fraud before they were completed. Although the bank subsequently blocked the card upon detecting unusual activity, the loss had already occurred.

Given David’s failure to promptly report the missing card, he did not discharge his duty of care under the Credit Card Agreement.

Accordingly, case manager agreed with the bank’s decision. David remains liable for RM24,954.83. However, ABC Bank was to waive all interest and late payment charges arising from the disputed transactions.