GER: Banks not Liable in Grandparent Scams

Mar 7, 2025 Benn-Ibler Rechtsanwälte

In grandparent scams, banks are not liable. This has been decided by the Higher Regional Court of Nuremberg, Germany. Only if there is massive suspicion of a risk to customers’ assets are banks obliged to warn and inform them.

In the case at hand, within an hour and a half, an elderly man had twice withdrawn a total of EUR 83,000 from his account at a bank branch in Nuremberg. Later, he sued his bank, claiming that the bank had breached its contractual duty to protect and warn by paying out the money to him despite obvious signs of a grandparent scam. The bank’s defence was that its staff had been properly trained and had even told the man about the possibility of a grandparent scam at the time he withdrew the cash.

The court of first instance dismissed the case stating that the bank was only obliged to provide information and issue a warning in exceptional cases where there were massive and objective grounds for suspicion. Such grounds were not present in the case at hand. The plaintiff had acted objectively, calmly, and unobtrusively in the bank. Neither the plaintiff’s age, the amount of money, nor the fact that a transfer had been made from his savings account to his current account had given rise to criminal suspicion. Moreover, during both withdrawals, the bank clerk had asked the plaintiff if he was aware of grandparent scams. The plaintiff answered in the affirmative. Hence, the bank employee was not required to ask any further questions, according to the court of first instance.

The Higher Regional Court rejected the claim that the defendant bank had breached its duty of care and duty of information. The customer was not required to provide reasons for the use of his funds, and the bank was contractually obliged to pay out.

Press release no. 5/2025 of OLG Nuremberg, 14U 2275/22 (18 November 2024)