Log files helped a bank to win a case against a customer who claimed he had been a victim of ATM fraud.


According to a report by Computing, a judge has ruled in favour of Halifax bank in the UK's first lawsuit over phantom withdrawals from cashpoints.


Customer Alain Job sued the high street bank, claiming that a fraudster withdrew £2,100 from his account at cash machines, despite the fact he did not lose his card and changed his PIN as soon as he received it.


Halifax refused to refund the sum and claimed that its chip-and-PIN system is secure. The suit was filed by Job after two critical pieces of evidence - the original ATM card and the Authorisation Request Cryptogram, that could have proved that the card's chip had been read and authenticated by the machine that were once held by Halifax, were destroyed.


The judge based his ruling on log files that showed that Job's real card had been used for the transactions.


Ross Brewer, vice president and managing director at LogRhythm, said: “This is a classic, real-world example of the value that log files have when it comes to forensic investigations. It should be a wake-up call to any organisation, which currently doesn't have any means of organising or reporting on log data.


“We are living in an increasingly litigious society which means that it is even more important for companies to be able to access and report on historical activity.”