Actualization of Implementing the Principle of Caution by Banks in Efforts to Minimize Fraud in Providing Prime Customer Services by Bank

DOI

10.2991/978-2-38476-356-6_27How to use a DOI?

Keywords

Prudent Banking Principle; Bank; Customer; Risk

Abstract

The banking industry is essential to a country’s economic development, and this necessitates the utilization of banking services. One such service is premium customer service, which includes cash pick-up services for customers. This study delves into a case involving cash pick-up services that have resulted in financial losses for customers due to fraudulent activities perpetrated by bank insiders. The goal of the study is to produce concepts, conclusions, and remedies to deal with the problem of client losses associated with cash pick-up services. It employs a normative legal research technique due to the ambiguity of the requirements in Article 20A of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector. The study’s findings indicate that confidence, bank prudence, and legal certainty form the philosophical cornerstone of client interactions in banks’ premium customer service. The structure of legal protection for customers against losses arising from premium customer service is, as a preventive measure, to enter into agreements related to premium customer service and to explain that customers have an effective complaint mechanism if they face risks or losses in their relationship with premium customer service. In addition, the involvement of the Deposit Insurance Corporation or a fund insurance system is also considered important to protect customer funds. The expected findings are the existence of agreements in the context of picking up cash to the customer’s location based on the principle of bank prudence, which includes preventive and repressive clauses in order to reduce risk and achieve legal certainty.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - I. B. Gede Agustya Mahaputra
AU  - I Made Aditya Mantara Putra
AU  - Johannes Ibrahim Kosasih
PY  - 2025
DA  - 2025/02/11
TI  - Actualization of Implementing the Principle of Caution by Banks in Efforts to Minimize Fraud in Providing Prime Customer Services by Bank
BT  - Proceedings of the 2nd International Conference Changing of Business Law (ICOCLB 2024)
PB  - Atlantis Press
SP  - 227
EP  - 233
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-356-6_27
DO  - 10.2991/978-2-38476-356-6_27
ID  - Mahaputra2025
ER  -