It can happen to anyone. Sandy Blonde had her purse stolen, together with all her documents and her cashcard (also known as EC-card).

After immediately reporting the theft to her bank, she had her card frozen - but by then the thieves had already helped themselves to EUR 1,000 from her bank account.
Blonde asked the bank to refund money but it refused, claiming that she had negligently given the money away because the thieves had entered the correct PIN with the first attempt.

In mounting her case, Blonde claimed that the bank’s security procedures were not secure enough. She then went to court and finally the 'Bundesgerichtshof' (the highest civil court in Germany) issued a ruling.

Living as we all do an increasingly cashless world, the court's decision has ramifications for our everyday lives.  

The banks usually do not have to refund customers' money that has been taken from their accounts after their cashcard has been stolen.

The court went on to rule that it would be mathematically impossible to crack the EC-card security codes.

The theoretical possibility of deciphering the code is not deficient enough to consider the bank’s security system as insufficient against attacks.

Customers of Germany's Sparkassen (savings banks) are only liable for up to EUR 500 per day between when the card was stolen and theft was reported to the bank, with the bank presuming negligence on the part of the card-holder.

So how is Ms Blonde to prevent misuse of her card?

There are some very simple measures that you can easily adopt to prevent the misuse of your cashcard.

PIN Code

Never put it as a note on your card!

Banks also advise not to write it on any documents which are kept near to your cash card.
Letters from the bank containing your PIN are to be destroyed after opening – best burnt or maybe eaten.

If you enter the number into your mobile then, do not file it under 'PIN', 'code' or the like. Disguise the entry as much as possible to look like just another telephone number entry.

At the counter or ATM:

'Be cautious' is the maxim.

While typing the PIN into the automatic teller machine cover one hand with the other.

A PIN number is never required to enter a bank. This is only a trick to get a hold of your PIN.

In case the ATM swallows your card, consult a bank officer in the branch of the hungry ATM - ASAP.

When entering a bank it is good to ask yourself following questions:

In Case of Loss

Call the emergency number and have the card frozen. To do so you need the number of your stolen card and your account number.

Note the circumstances of loss and file a report to the police. Countermand unauthorised withdrawals immediately.

General emergency number:
 + 49 (0) 1805 – 021 021
for all savings bank, Maestro-, bank and EC-cards

Further information is obtainable on the internet at www.Kartensicherheit.de – but only in German. For those interested in the details of the Blonde case they should consult: BGH 5 October  2004, XI ZR 210/03).

December 2004

[Copyright Expatica 2004]

Subject: Life in Germany, Legal advice, ask our lawyer