CZECH REPUBLIC Law and Practice Contributed by: Stanislav Šimek, Vojtěch Mlynář and Jakub Dostál, BADOKH
12.3 Responsibility for Losses Fintech service providers are generally required to perform their services with due professional care and are liable for damages arising from any breach of their statutory or contractual obligations. Payment service providers are liable for unauthor - ised, unexecuted or incorrectly executed transac - tions. Where losses result from a lost or stolen pay - ment instrument, the payer’s liability may be capped at EUR50. The new EU payment services framework (PSD3/ PSR) will expand provider obligations. Key measures include an obligation to verify consistency between a payee’s IBAN and name prior to execution and the introduction of a cross-provider fraud data sharing mechanism.
communication styles and visual identities of finan - cial institutions or state authorities to harvest sensi - tive log-in credentials or payment card details, or to persuade victims to insert money into bitcoin ATMs. These techniques are frequently enhanced by spoof - ing, which allows the fraudster’s phone number to appear as the official contact line of a legitimate insti - tution. 12.2 Areas of Regulatory Focus Regulatory focus is primarily centred on mitigating digital financial crime, with particular emphasis on investment fraud and Ponzi-type schemes. Investment fraud is of special concern given the scale of harm involved (damages can reach billions of CZK and affect large numbers of victims). The National Organized Crime Agency (NCOZ) has dealt with sever - al cases of subsidy fraud involving significant financial damages, where funds were extracted under the pre - text of scientific research or technological innovation. Regulatory attention is also directed towards crimes related to cryptocurrencies. These have become a key tool for anonymising financial transactions, espe - cially in the context of money laundering and fraudu - lent schemes. Perpetrators employ social engineer - ing techniques, deepfake technologies and phishing campaigns to gain access to victims’ assets. Of significant concern is the misuse of cryptocurrency mixers, which help disperse traces of transactions and make the detection of criminal activity more difficult.
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