Regulatory Alerts2015-04-15 | JB-2015-3358Banking Board Resolution JB-2015-3358
The Banking Board of Ecuador confirmed an administrative order requiring Banco Pichincha to refund USD 4,945.00 to a customer for unauthorized electronic transfers. The Board rejected the bank's appeal, ruling that the institution failed to maintain adequate fraud prevention systems and security protocols despite receiving multiple fraud alerts prior to the transactions. The decision establishes that the bank bears responsibility for the losses due to its failure to secure the electronic channel, regardless of parallel criminal investigations.
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