The Civil Liability of Financial Institutions for Fraud in the PIX System

The exponential growth of transactions via PIX In Brazil, there has been a significant increase in cases of... Financial fraudAccording to a recent study by ACI Worldwide, a company specializing in payment technology, Brazil could reach the mark of R$: £11 billion in PIX scams by 2028.

The speed and practicality of PIXwhich revolutionised the payment system in the country, also spark interest from Fraudsterswhich exploit vulnerabilities in the financial system for the purpose of fraud, including the use of Artificial intelligence (AI).

Given this situation, it becomes essential to understand The limits of financial institutions' liability а також Rights of victims of bank fraud.

Central Bank Regulations and the Duty of Security for Financial Institutions

THE Resolution No. 147/2021 робити Central Bank of Brazil establishes guidelines for Fraud prevention and mitigation in PIXThe articles 39-B and 78-F Determine that, when suspicious of fraud, financial institutions must Provisionally block the transferred amounts.either on their own initiative or at the client's request.

In addition, the Article 32, clause VOf the same resolution, imposes on... Participants in PIX The obligation of Be responsible for frauds arising from failures in their risk management mechanismsThis includes Neglect of safety measuresSuch as monitoring suspicious transactions and responding quickly to potential fraud.

The Central Bank's guidelines make it clear that Financial institutions have a duty to continuously monitor the services they provide.Adopting Preventive measures To prevent fraud and scams. Among these measures, the following stand out:

• Immediate blocking of suspicious transactions;
• Continuous monitoring of atypical movements;
• Adoption of stringent security and authentication protocols;
• Collaboration between financial institutions for fraud data sharing.

When Can Financial Institutions Be Held Liable?

The responsibility of financial institutions can be defined In the following situations:

1. Negligence in the handling of a request for blockingWhen the victim of fraud Communicate immediately.Please provide the full sentence or paragraph in Portuguese. "a fraude ao banco e solicita o" is not a complete thought. Value blockingbut is not attended to in time, allowing the fraudulent actors to move the funds.
2. Security system failuresIf identified System intrusion into the bank's internal network.By demonstrating vulnerabilities in its protective mechanisms, the institution could be held liable for any resulting damages.
3. Failure to comply with Central Bank guidelinesIn the event that the institution Do not observe the established safety protocols.Failure to provide adequate monitoring or implement preventative measures could result in the company being liable for full compensation to the injured user.

Once proven that Omission or failure to provide the serviceA financial institution may be required to compensate the client for the financial losses suffered.

Prevention Measures for Financial Institutions and Users

To minimise the impact of fraud and ensure greater security for customers, financial institutions should adopt preventative strategies, such as:
Define transaction limits To reduce the impact of high-value scams;
Monitor user behaviour patterns To detect suspicious activity;
Investing in technology and artificial intelligence To strengthen authentication and security mechanisms;
Sharing information about fraud Between banks and regulatory bodies to improve policies combating financial fraud.

Essential Precautions for PIX Users

On the other hand, users should also take steps to protect themselves from fraud, including:
Avoid clicking on unknown links. or providing bank details to third parties;
Be wary of suspicious messages. that require urgent transfers;
Always verify the recipient's authenticity. Before undertaking any transaction;
Turn on bank transaction notifications To monitor your transactions in real time.

What to Do if You're a Victim of PIX Fraud?

If you're a victim of a PIX scam, you should act quickly to try and recover the funds.

1 ^^^ Contact the financial institution immediately. to report the fraud;
2 ^^^ Request a block on the transferred amounts by means of Special Return Mechanism (SRM);
3 ^^^ Report a crime to gather evidence of the fraud;
4 ^^^ If the value is not returnedseek legal assistance to assess the financial institution's liability.

THE Special Return Mechanism (SRM) allows for the recovery of values In cases where fraud or a bank system failure is proven..

If the financial institution Do not return the values. It has been found that... Failure to comply with Central Bank regulations or system security breachesA victim may demand Full compensation for material damages suffered.

Vitor Henrique Mainardes – Specialist in Civil and Commercial Law from PUC/PR and lawyer at the firm Alceu Machado, Sperb & Bonat Cordeiro Law Firm.