Supreme Court Sets New Precedent Protecting Credit Card Fraud Victims
Thailand’s Supreme Court has set a major new legal precedent strengthening consumer protection by ruling that credit card holders are not automatically liable for fraudulent transactions made using their card details by criminals.
Under the ruling, the burden of proof in disputed credit card transactions rests with the issuing bank, not the cardholder. Financial institutions must prove who actually used the card, and liability cannot be presumed simply because a person’s name appears on the card.
The judgment, disclosed by the Thailand Consumers Council (TCC), was issued on Dec 17 and dismissed a claim filed against a credit card holder who denied making the disputed transactions. The court found that consumers should not be held responsible when their card information is misappropriated and used without authorisation, marking a significant step forward in consumer protection jurisprudence.
Surakit Singhapol, legal and litigation officer at the TCC, said the ruling establishes an important legal principle in consumer litigation, particularly in cases involving technology-related financial crimes. The court made clear that the appearance of a person’s name on a credit card does not automatically prove that person carried out the transactions in question.
In its decision, the court ruled that the financial institution failed to present sufficient evidence to show the cardholder personally used the card or was involved in the actions that caused the financial loss. As a result, liability could not be imposed based on assumption alone.
Mr Surakit said consumers should not be forced to absorb losses caused by third-party criminals or by weaknesses in banks’ security systems and risk management practices.
“The fact that a consumer is the named cardholder does not mean they are always the person who made the transaction,” he said. “If the bank cannot prove that the cardholder carried out the transaction, then the cardholder cannot be held liable for the debt.”
He added that consumers are in a far weaker bargaining position than financial institutions, which have specialised knowledge and resources. Requiring consumers to prove their innocence in every case would create an unreasonable burden and contradict principles of fairness, consumer protection, and legislative efforts to reduce structural inequality between service providers and users.
The TCC said it will use the ruling as a guideline when providing legal advice to consumers affected by unauthorised credit card use and as a basis for policy advocacy with regulators and financial institutions to strengthen consumer safeguards.
Mr Surakit also urged consumers to act quickly if they fall victim to credit card fraud by reporting the incident to both their bank and the police. Prompt reporting is a key factor considered by courts when assessing whether a consumer acted prudently and had no involvement in the fraud.
Last year, the TCC received complaints involving credit card fraud totalling more than 17 million baht and continues to assist affected consumers nationwide.
