EU Court Requires Banks to Refund Reported Account Fraud
Banks must promptly return money taken in account fraud when customers report it on time, with a narrow exception for suspected customer fraud.
Key takeaways
- Banks must promptly refund payments from account fraud when customers report them in time.
- A Polish phishing victim lost about 700 euros after entering her banking details on a fake site.
The European Court of Justice ruled that banks must promptly refund money taken through account fraud when customers report it in time. The case involved a Polish customer who lost about 700 euros in a phishing scam.
A fraudster posing as a buyer sent her a link to confirm a sale. It led to a fake bank website, where she entered her online banking details. The customer reported the transfer the next day, but the bank refused to reimburse her, citing gross negligence.
The court said the exception applies if a bank suspects the customer of fraud and reports that suspicion in writing to the relevant national authority. A consumer protection expert told Der Spiegel that similar disputes in Germany can leave customers facing lengthy efforts, unfavorable settlements or the risk of legal costs.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
