Portugal bank fraud victims gain stronger protection

The Court of Justice of the European Union (CJEU) ruled that banks must generally provide immediate refunds for unauthorized transactions, rejecting the ability of banks to withhold funds based solely on claims of customer negligence. Reimbursements must occur by the end of the next business day following notification, unless the bank has reasonable grounds to suspect fraud by the customer and reports it to authorities. Banks retain the right to pursue customers later if they can prove gross negligence or intentional misconduct, but the burden of proof rests entirely on the financial institution.