Published on: March 13, 2025 | Article No: 314 | By: @rprasanth_kumar
Ever fallen for a scam and hoped your bank would reimburse the money? Well, the French Supreme Court just made it clear: if you’re careless, don’t expect a refund from your Bank. A recent court in France ruling on 15th January 2025, confirms that banks aren’t responsible for reimbursing victims of fraud when personal negligence is involved. Very Harsh? Maybe but it sets a very crucial precedent for future cases and also an important reminder.
Companies Scammed & Bank Refunds?
Two companies in France got hit by a phishing attack, leading to six unauthorized money transfers to foreign accounts. Naturally, they asked their bank for a refund but were refused. They took the fight to court, claiming the bank should have spotted the fraud.
- The Court (La Cour d’appel ) initially ruled that the bank was 50% responsible, citing a lack of vigilance and security checks.
- The bank, not happy with this judgment, took the case to the Supreme Court in France (La Cour de cassation).
- The final verdict? No reimbursement from Bank because the companies’ negligence was the real issue.
Is a Bank responsible for an Individual’s negligence?
Now, what if you’re just an everyday customer? Meet Mr. and Mrs. XYZ. They thought they were buying a car but got scammed instead.
- They did a bank transfer using the IBAN provided in an email.
- A hacker had swapped out the real seller’s bank details with their own.
- The couple’s money went straight into the scammer’s account.
When the seller never got paid, the couple turned to their bank for help. The bank refused and so the couple went to court.
- The Court (La Cour d’appel) sided with the couple, saying the bank should have checked for fraud.
- The bank fought back, taking it to the Supreme Court in France (La Cour de cassation).
- Final ruling? La Cour de cassation ruled that the bank wasn’t at fault and so there will no reimbursement. The couple had used the wrong IBAN, and as per Article L. 133-21 of the French Monetary and Financial Code, that’s on them.
Key Takeaways: Protect Yourself
These rulings make one thing crystal clear: banks won’t cover your losses if you’ve been careless. Here’s what you can do to stay safe:
✅ Double-check IBANs (bank account details) before sending money, especially for large transactions.
✅ Avoid sharing financial details via email because hackers love intercepting them.
✅ Use multi-factor authentication and other security measures to protect your accounts.
✅ Be skeptical of last-minute changes to payment details.
At the end of the day, banks have security measures in place, but they can’t protect you from yourself. Be smart, stay vigilant, and don’t assume your bank will clean up the mess if things go wrong.
Support This Blog!
If you’ve found my articles helpful and you want to say thanks, a cup of coffee or two is very much appreciated!. Please help keep it going!
DISCLAIMER
Any finance-related information shared is not professional legal, tax, or investment advice. The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code. Investment carries risks of loss and past performance does not guarantee future performance. Please consult a financial advisor for any professional advice.