Common use of Security and Fraud Prevention Clause in Contracts

Security and Fraud Prevention. The Operating Procedures provide for general guidelines regarding security efforts of Bank and the Spiegel Group to limit and prevent the fraudulent opening of Accounts and the fraudulent compromising of Accounts. Bank shall be responsible for all damages related to any and all Purchases placed upon an Account that was fraudulently opened, provided that Spiegel Group has followed all Operating Procedures. Spiegel Group shall be responsible for any Chargeback arising out of a Purchase by a non-cardholder who has compromised an Account where Spiegel Group has failed to follow all Operating Procedures regarding the acceptance of the Credit Card. The parties will exercise best efforts in developing and/or utilizing commercially reasonable and appropriate industry best practices and preventative measures, as such change from time to time during the Term, to prevent and lower fraudulent Account openings and Purchases, and to protect information exchanged hereunder, including but not limited to, any information referenced in Section 10.17 or otherwise delivered to the other pursuant to this Agreement or for system testing and reconciliation.