Bank Liability for Online Fraud — Account Holder Data Disclosed

Our client was defrauded in an online trading scam. A key obstacle to recovery was identifying who controlled the foreign bank account to which the funds had been transferred. We obtained a judicial order requiring the foreign bank to disclose the account holder's identity, opening the path to criminal prosecution and civil recovery.

The identification problem

In online trading fraud, the most critical evidential step is identifying the natural person or legal entity behind the receiving bank account. Fraudsters routinely use layered structures — multiple bank accounts in different names, often in different countries — specifically to prevent identification. In this case, the transfer chain ended at a foreign bank account whose holder was not identifiable from the information our client possessed.

Judicial order for bank disclosure

We filed a criminal complaint and requested that the Italian court issue a formal order to the foreign bank requiring disclosure of the account holder's identity and all related account documentation. The request was supported by a detailed analysis of the transfer chain and the circumstances of the fraud. The court granted the order. The foreign bank — a regulated EU institution — complied and disclosed the account holder's identity.

Bank secrecy has limits in criminal proceedings. When a bank account is used to receive the proceeds of fraud, the criminal court has authority to require the bank to disclose the account holder's identity. That disclosure is often the pivotal step that makes prosecution — and recovery — possible.

Outcome

The account holder's identity was disclosed. Criminal charges were filed against the identified individual. Civil recovery proceedings were initiated. Our client's case moved from an unidentifiable fraud to an active prosecution with a named defendant.