A recent decision of the Argentine National Commercial Court of Appeals reinforces an increasingly settled principle in Argentine banking litigation: financial institutions are subject to strict liability for unauthorized transactions carried out through online banking platforms.
The Court upheld a judgment ordering a bank to reimburse funds fraudulently transferred from a customer’s account and to compensate the customer for non-pecuniary damages.
The significance of the decision lies in its allocation of risk. The Court held that the bank may escape liability only by proving that the customer acted with fraud or gross negligence. The burden of proof rests entirely with the financial institution.
The ruling reflects a broader judicial trend under Argentine law. As digital banking services expand, courts increasingly place the operational and cybersecurity risks associated with those services on the institutions that design, control and profit from them, rather than on their customers.
For banks, fintech companies and foreign investors operating in Argentina, the decision underscores the importance of maintaining robust cybersecurity frameworks, effective fraud prevention systems and well-documented authentication procedures. These measures are no longer merely operational best practices; they have become key elements in managing legal exposure.
The case is another reminder that digital transformation in the financial sector is accompanied by increasingly demanding judicial standards regarding consumer protection, cybersecurity and operational risk allocation.
Source: Gentile, Ester Beatriz v. Banco de la Ciudad de Buenos Aires, National Commercial Court of Appeals, Chamber D, Judgment of July 17, 2026, Case No. COM 019599/2022/CA001.