€700 bank scam: court says banks must refund first

A bank scam costs a woman the equivalent of 700 euros: she follows a fake payment link, and her bank refuses to refund her. Now the Court of Justice of the European Union says banks must normally repay unauthorised payments first, even if they suspect the customer was careless. The decision, reported on 16 October 2026, follows a question from a court in Poland.

A payment link that looked like her bank

The woman had put an item up for sale online. Someone posing as a buyer sent her a payment link. It led to a page pretending to be her bank, where she entered her login details. A third party then transferred the equivalent of 700 euros.

She reported the fraudulent payment, but the bank refused to return the money, saying she had been negligent.

The refund comes before any claim

The court says a payment provider must, in principle, refund an unauthorised transaction immediately — no later than the end of the next business day after it notices the payment or is told about it. The payment must be reported without unjustified delay. Banks are covered by that rule.

That order matters for bank customers on Mallorca too: an allegation of carelessness does not, by itself, let a bank withhold the initial refund. It can later seek to recover the money if it proves the customer deliberately, or through gross negligence, failed to protect their personal security details.

Spain’s consumer group Organización de Consumidores y Usuarios welcomed the ruling, saying customers should not be left without their money while that dispute is settled.

Topics: Court cases · Economy

Source: Europa Press / Mallorca.com