Landmark Court Victory for a Victim of Electronic Banking Fraud – Court of Appeal Holds the Bank Liabl

Our Law Firm has achieved a significant legal victory in a case involving electronic banking fraud (phishing), with the competent Court of Appeal fully vindicating the victim and recognizing the bank’s liability for compensating the loss suffered.

The case concerns an incident that occurred in January 2022, when one of our clients became the victim of a sophisticated telephone and online phishing scheme. An unknown fraudster exploited the victim’s distress and emotional pressure, inducing them to disclose information that enabled unauthorized access to their online banking account.

Within minutes, the perpetrators altered the client’s e-banking credentials, initiated a high-value instant interbank transfer to an account held with another financial institution, and successfully completed the unauthorized transaction.

The victim realized almost immediately that they had been defrauded and promptly contacted their bank, expressly instructing it to cancel the transaction and block all payment instruments. Despite these immediate notifications and repeated requests, the transfer was not reversed in time, while the recall request to the beneficiary bank was transmitted only on the following day instead of immediately.

Throughout the proceedings, the banks involved refused to accept responsibility or reimburse the stolen funds. Furthermore, they failed to provide the information necessary to identify the beneficiary of the account to which the funds had been transferred. Consequently, our client was compelled to seek judicial protection.

In its judgment, the Court of Appeal upheld the legal arguments advanced by our Law Firm and ruled that the bank bears liability for compensating the victim’s loss. The Court recognized both the legal and factual merits of the claim, holding that the specific circumstances of the case, the victim’s immediate response following the fraud, and the bank’s subsequent omissions established its obligation to restore the misappropriated funds.

This judgment is of particular importance, as it confirms that victims of electronic banking fraud are entitled to effective legal protection and that credit institutions are subject to heightened duties of care, both in executing high-risk transactions and in responding promptly to reported fraud incidents.

The ruling constitutes a landmark judicial precedent in addressing modern forms of cyber-enabled financial fraud and underscores the necessity of providing effective consumer protection against increasingly sophisticated methods of cybercrime.

Our Law Firm remains firmly committed to protecting the rights of victims of electronic banking fraud and continues to successfully represent clients in complex banking and financial litigation, contributing to the development of case law in this evolving area of law.