Who is liable for the damage if a hacker succeeds in initiating fraudulent transactions on a Swiss bank account?

According to a judgement of the Swiss Federal Court, it was the bank which ultimately had to bear the loss (Swiss Federal Court, decision of 5 December 2016, 4A_386/2016). However, do not be too sure that this will always be the case. In comparable cases, it could also be that the bank customer is left bearing the damage caused by an unauthorised person.

In order to familiarise you with the legal situation regarding Swiss bank accounts, we would like to present the facts and findings of the Federal Court's decision in detail. This also helps you - as a client of a Swiss bank - to understand why it is always advisable to read the Bank's General Terms and Conditions carefully and to comply with them.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.