ECJ rules banks must refund fraud victims, shifting liability burden

The European Court of Justice (ECJ) has ruled that EU banks must provisionally refund customers for unauthorized account fraud, including phishing, even in cases of gross negligence, unless fraud by the customer is proven. This decision shifts the primary liability burden from consumers to financial institutions, establishing a binding precedent across EU member states. The practical impact on national implementation and bank recourse mechanisms remains to be fully observed.