Apple Pay

Kifid Sets New Standard for Gross Negligence in Unauthorized Bank Payments

The Dutch financial complaints institute Kifid has introduced a clearer benchmark for determining gross negligence by bank customers in cases of unauthorized payments. The ruling stems from a dispute involving a Rabobank customer whose phone was stolen during a holiday in Ibiza, leading to 3,500 euros in unauthorized transactions via Apple Pay. Although Kifid confirmed the payments were unauthorized and the customer had filed a police report, it rejected the claim for reimbursement. The institute found the customer grossly negligent for failing to explain how the phone's Face ID and passcode protections were bypassed. Kifid defined gross negligence as acting or omitting to act in an unusually high degree that a normal, reasonable, and careful payer would never do. The decision references an earlier Commission of Appeal ruling that had created inconsistent interpretations of the term. Rabobank is not required to compensate the customer, though an appeal remains possible.