Europe’s highest court has ruled that banks must immediately reimburse victims of phishing for unauthorised payments, even in cases of gross negligence.
The ruling could affect the approach of Belgian banks, as many currently refuse to reimburse customers straightaway because they first want to determine whether gross negligence was involved. The European Court of Justice said on Thursday that banks must refund the money before deciding whether to seek compensation from the customer.
If there is indeed gross negligence, such as a customer handling their banking details carelessly, the bank may later claim compensation. In that case, however, the burden of proof lies with the bank.
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Belgian consumer organisation Testachats-Testaankoop welcomed the judgment. Spokesperson Laura Clays said the court had clarified something that had long been set out in the law, but which banks had not always followed.
"We have been pointing out for years that banks were failing to comply with existing rules and were reversing the burden of proof," she said.
"Many courts in Belgium had already confirmed this. We now have a ruling from Europe’s highest court definitively stating that banks must pay first and only then argue the case, and we hope they will finally comply with it."
