The Judgment of the Karlsruhe Higher Regional Court – An Isolated Case in Bank Transfer Fraud?
My law firm is seeing an increasing number of cases in which clients have become victims of bank transfer fraud. They are often taken in by forged invoices with manipulated IBANs. In my experience, senders are frequently hacked due to poor IT security. This allows correctly created invoices to be altered and sent directly from the sender's server.
These fraudulent invoices often contain notes such as “Oh, sorry, take this invoice…” or “this contract”. In contrast to the ruling of the Higher Regional Court of Karlsruhe of 27.07.2023 (Ref. 19 U 83/22), such incidents may lead to liability on the part of the sender.
Analysis of the Karlsruhe Higher Regional Court Judgment
In its judgment of 27.07.2023 (case no. 19 U 83/22), the Higher Regional Court of Karlsruhe ruled that a buyer must pay even after transferring money to a forged invoice with a false IBAN. The specific case involved the purchase of a used car.
The seller had initially sent a correct invoice. However, the buyer soon received a second email with changed bank details. He transferred money to this incorrect account, ultimately losing both the car and his money. The OLG concluded that the buyer was obligated to verify the authenticity of the second email. Consequently, the purchase price debt was not fulfilled by the transfer to the wrong account.
Are You Obliged to Pay Twice for Fake Invoices?
In my experience, this judgment cannot be generalized. Whether the invoice recipient has to pay again depends heavily on the individual circumstances. The decisive factor is how plausible the forged invoice appeared and whether the recipient could, and should, have recognized the manipulation.
It is true that payment to a false account does not fulfill the purchase price debt, as it is a debt to be discharged at the creditor’s domicile. However, there may indeed be claims against the allegedly hacked sender. This depends on how well they protected their IT systems and whether they share blame for the hack.
Common Types of Bank Transfer Fraud
Unfortunately, bank transfer fraud is a widespread phenomenon. Fraudsters employ various scams to trick victims.
- CEO fraud: Here, perpetrators impersonate a high-ranking executive and instruct employees to make urgent bank transfers.
- Fake invoices from suppliers: Hackers penetrate suppliers’ email servers and send fraudulent invoices.
- Romance scam: Scammers use dating platforms to gain victims' trust, then request money.
- Phishing: Bank customers are lured by email or SMS to fake websites where they are prompted to disclose their access data.
Immediate Steps After Falling Victim to a Fake Invoice
Anyone who discovers they have paid a fraudulent invoice should act quickly. Time is often critical in such situations.
- Inform your bank immediately and attempt to arrange a return transfer. Unfortunately, under SEPA rules, this is often no longer possible once the transfer has been executed.
- In any case, file a complaint with the police. Combined with an investigation request to the bank, this may lead to the money being seized.
- Document and secure all evidence, especially email correspondence.
- Inform the actual biller and describe the facts of the case in detail.
- Seek legal advice. A lawyer can assess whether you must pay again and if there are any claims against the sender.
Need Legal Advice? Contact Us Today!
Have you also fallen victim to bank transfer fraud, perhaps due to a fake invoice? Are you unsure about your next steps?
I will be happy to advise you on your options and represent your interests vis-à-vis the biller. You can easily book an initial assessment of your case via my Calendly tool.
In a 15-minute phone call, you can describe your case, and I will provide an initial legal assessment. You can find the link directly here on my website. For more in-depth advice, it's best to make an appointment with my office right away.
With Velevo GmbH & Co KG, I also have a strong partner at my side to analyze possible IT weaknesses at your company or your invoicing party. This collaboration helps strengthen your position, and an audit is definitely worthwhile. I can assist you with this process.
Simply contact me at info@itmedialaw.com or via the contact form on my website. Together, we will find a solution! I look forward to getting to know you and supporting you in your difficult situation.
Conclusion
Bank transfer fraud involving fake invoices is a complex and growing problem. While recent court rulings may place a burden on the recipient, each case depends on specific details. Acting quickly and seeking expert legal advice is crucial to assess your options and protect your financial interests effectively.