Banks may be held liable for mobile digital fraud in Brazil

Legal experts in Brazil are highlighting the liability of financial institutions regarding the rise of mobile-based digital fraud. As scams involving phishing, account invasions, and fraudulent Pix transactions increase, legal arguments are being reinforced to hold banks accountable for security failures.

Under the Brazilian Consumer Defense Code, the responsibility for service failures is considered objective, meaning banks may be held liable for damages regardless of proven fault. This is supported by the Superior Court of Justice (STJ) Precedent 479, which establishes that financial institutions can be held responsible for frauds linked to the inherent risks of their business activities, even when committed by third parties.

Victims of digital scams have several legal avenues for recourse. Beyond the Consumer Defense Code, the Civil Code governs civil liability and the duty to repair damages, while the General Data Protection Law (LGPD) applies to data leaks and misuse. Additionally, the Marco Civil da Internet and the Penal Code address electronic fraud and crimes such as electronic larceny.