In a landmark decision, the Spanish Supreme Court has unequivocally placed the responsibility for digital fraud on banks, mandating them to reimburse affected customers immediately unless the bank can prove the customer acted with gross negligence. This ruling, dated April 9, underscores the banks' obligation to enhance their diligence and adopt better practices to detect and prevent fraudulent transactions, leveraging technological advancements to safeguard customers' assets.
The case that led to this pivotal ruling involved a victim of SIM swapping, a sophisticated fraud technique where perpetrators duplicate a victim's SIM card to gain unauthorized access to their digital banking services. The victim lost €83,000 through over fifteen unauthorized transactions conducted overnight. The Supreme Court criticized the bank for failing to detect and halt these transactions, which were markedly out of the ordinary for the customer's typical banking behavior.
The court's decision is rooted in the European Payment Services Directive and Spanish law, which already impose a quasi-objective liability on banks in such scenarios. However, the Supreme Court's ruling now sets a clear legal precedent, emphasizing that banks must employ adequate technological tools to monitor and flag anomalous transactions, such as those occurring at unusual hours or involving unusually large amounts.
This ruling not only reaffirms the banks' duty to protect their customers from digital fraud but also highlights the importance of immediate action by customers to report unauthorized transactions. The Supreme Court's stance is a significant step towards enhancing digital banking security and ensuring that the financial burden of fraud does not unjustly fall on the victims.
The Spanish government has expressed respect for the ongoing strike by judges and prosecutors, emphasizing its commitment to proceed with judicial reforms. Government spokesperson Pilar Alegría acknowledged the strike during a press conference following the Council of Ministers, highlighting...
An Air Europa Boeing 787-900, en route from Asunción, Paraguay, to Madrid, Spain, was forced to make two emergency landings at the Silvio Pettirossi International Airport due to a reported technical issue. The aircraft, carrying 272 passengers, initially took off at 13:15 local time but...
The Secretariat of National Defense (Sedena) has come under scrutiny following revelations of its purchase of diesel fuel worth over 500 million pesos from Ecocarburante SA de CV, a company allegedly connected to a huachicol network. This transaction occurred during the construction phase of...
Spain has officially rolled out a new regulatory framework targeting short-term holiday rentals, a move aimed at aligning with European standards and addressing the country's housing crisis. Effective from July 1, the mandate requires all properties listed for tourism purposes, including...
Sevilla FC has officially announced the signing of Alfon González as their first acquisition for the 2025-26 season. The 26-year-old winger arrives on a free transfer after his contract with Celta de Vigo expired. Alfon has signed a three-year deal with the Andalusian club, marking a new...
