EU Court Adviser Advocates Immediate Refunds for Phishing Victims: What This Means for Banks

By Sentaro Team · Published March 9, 2026

A recent opinion by the EU court adviser suggests banks should immediately refund phishing victims, impacting financial sector liability and fraud prevention strategies.

What Happened

Athanasios Rantos, the Advocate General of the Court of Justice of the European Union (CJEU), has issued a significant opinion that could reshape the responsibilities of banks in the EU. According to Rantos, banks should immediately refund customers affected by unauthorized transactions due to phishing attacks, even if the customers were partially at fault. This opinion, while not legally binding, is highly influential and could lead to changes in how banks handle phishing incidents.

Why It Matters

This development is crucial for several reasons. Firstly, it increases the liability of banks regarding phishing attacks. Traditionally, banks have been able to deny refunds if they could prove customer negligence. However, Rantos's opinion suggests a shift towards greater consumer protection. This change could lead to increased operational costs for banks as they may need to bolster their fraud detection and prevention measures.

Secondly, this opinion could lead to a more uniform approach across the EU, providing clarity and consistency in how phishing cases are managed. For businesses, this could mean a more predictable banking environment, but it also implies that banks may need to invest more in educating customers about phishing risks to mitigate potential losses.

What to Do Next

Businesses and individuals should take proactive steps to protect themselves from phishing attacks, given the potential financial implications. Here are some recommended actions:

• Educate Employees: Regularly train employees on recognizing phishing attempts and the importance of safeguarding sensitive information.
• Implement Strong Security Protocols: Use multi-factor authentication and other security measures to protect accounts.
• Monitor Transactions: Regularly review account statements and transactions for unauthorized activities.
• Stay Informed: Keep up with the latest cybersecurity trends and updates, including legal changes that could affect your business.

Takeaways

• The EU court adviser suggests banks refund phishing victims immediately, even if victims are partly at fault.
• This opinion could lead to increased liability and costs for banks.
• Banks may need to enhance fraud prevention strategies and customer education.
• Businesses should proactively protect themselves from phishing attempts.

FAQ

What is phishing?

Phishing is a cyberattack where attackers impersonate legitimate entities to trick individuals into providing sensitive information, such as passwords or credit card numbers.

How will this opinion impact banks?

If adopted, banks may face increased liability, requiring them to refund victims more frequently, potentially leading to higher operational costs and a need for improved security measures.

What can businesses do to protect against phishing?

Businesses can protect against phishing by educating employees, implementing strong security protocols, and monitoring transactions for unauthorized activities.

As the landscape of cybersecurity evolves, it's crucial for businesses and individuals to remain vigilant. At Sentaro, we are committed to providing up-to-date information and resources to help you navigate these changes effectively.