Banks slip through virus loophole

A small addition to the Banking Code seems like such a minor thing. But the change, which came into effect at the end of March, has analysts and academics alike alarmed at what it could mean for online banking customers. Since the 2005 edition of the code (which dictates how UK banks do business with customers), section 12.9 has advised customers to keep their PCs secure. "Use up-to-date antivirus and spyware software and a personal firewall," it says.

The contentious addition to the new version is section 12.13. "Unless you have acted fraudulently or without reasonable care (for example, by not following the advice in section 12.9), you will not be liable for losses caused by someone else which take place through your online banking service," it says.