LUXEMBOURG Law and Practice Contributed by: Andreas Heinzmann, Valerio Scollo and Angela Permunian, GSK Stockmann
12. Fraud 12.1 Elements of Fraud
12.3 Responsibility for Losses Fintech service providers are governed by the Payment Service Law according to which they are responsible for customer losses in cases of unauthorised transactions and are obliged to refund the customer. In accordance with MiCA, CASPs are responsi - ble to their clients for any losses resulting from incidents related to ICT, including cyber-attacks, theft, or any system failures, as well as for any loss of crypto-assets resulting from providing custody and administration services. Besides, the CSSF has the power to impose administra - tive penalties and other administrative sanctions (see 2.10 Significant Enforcement Actions ).
There are no specific elements relating to fraud in financial services. The general definition of fraud under the Luxembourg criminal code applies, which requires the employment of fraudulent manoeuvres or abuse of trust or credulity. The CSSF has highlighted the main elements to detect suspicious providers, including unso - licited contact, offers of high profits or returns, tight deadlines, trial investments, and unclear identification of contracting parties, among other suspicious manoeuvres. 12.2 Areas of Regulatory Focus The CSSF provides recommendations and warnings in order to detect and report fraudu - lent activities. In particular, the CSSF is mostly vigilant with respect to falsification of websites of supervised entities, identity theft and cold calling.
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