A new rule change means UK banks could refuse to compensate victims of online fraud unless they have up-to-date security operating on their computers.

A recent rule change to the UK Banking Code means banks can refuse to compensate victims of online fraud if they do not have ‘up-to-date’ anti-virus, spyware and personal firewall installed and operating on their computer that used for accessing online bank accounts.

The new rule goes on to state that if someone has not taken reasonable steps to protect themselves using these software tools, and they fall victim to online fraud, that banks can refuse to compensate for any losses because the customer has failed to take ‘reasonable care’.

Of course proving a customer doesn’t have these tools installed is another matter and probably one that is difficult to police.

However, it makes sense to protect yourself as much as possible so take the advice of the banks and make sure you install security software and keep it up to date.