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EU Advocate General Rules Banks Must Immediately Refund Phishing Victims

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The Advocate General of the Court of Justice of the EU (CJEU) has issued an opinion stating that banks must immediately refund customers affected by unauthorized transactions due to phishing, even if the customer's negligence contributed to the fraud. The opinion clarifies that banks can later seek recovery of the losses if they can prove gross negligence or intentional misconduct by the customer. The case involved a Polish bank, PKO BP S.A., and a customer who fell victim to a phishing scam. The customer entered their credentials on a fake bank login page, leading to an unauthorized transaction. The bank refused to refund the victim, arguing the customer's negligence caused the loss. The Advocate General ruled that under the EU Payment Services Directive (PSD2), banks must first refund the victim unless they have reasonable grounds to suspect fraud.

Timeline

  1. 08.03.2026 17:25 1 articles · 23h ago

    EU Advocate General Rules Banks Must Immediately Refund Phishing Victims

    The Advocate General of the Court of Justice of the EU (CJEU) has issued an opinion stating that banks must immediately refund customers affected by unauthorized transactions due to phishing, even if the customer's negligence contributed to the fraud. The opinion clarifies that banks can later seek recovery of the losses if they can prove gross negligence or intentional misconduct by the customer. The case involved a Polish bank, PKO BP S.A., and a customer who fell victim to a phishing scam. The customer entered their credentials on a fake bank login page, leading to an unauthorized transaction. The bank refused to refund the victim, arguing the customer's negligence caused the loss. The Advocate General ruled that under the EU Payment Services Directive (PSD2), banks must first refund the victim unless they have reasonable grounds to suspect fraud.

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