By San José, Costa Rica — San José, Costa Rica – A landmark bill approved in its first legislative debate is set to dramatically alter the landscape of consumer protection in Costa Rica, shifting the burden of proof in electronic fraud cases from the victim to financial institutions. If passed into law, banks will no longer be able to presume customer culpability and will be required to reimburse stolen funds unless they can definitively prove client error or malicious intent.
The proposed legislation, championed by National Liberation Party (PLN) deputy Óscar Izquierdo, represents a fundamental change in how unauthorized transactions and online scams are handled. Currently, the onus is on the affected client to prove they were not at fault, a process that often leaves victims without recourse. This new law would flip that script, making banks the primary investigator and initial bearer of responsibility.
To better understand the legal landscape surrounding electronic fraud and the recourse available to victims, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in corporate and digital law from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the matter.
Electronic fraud is a constantly evolving threat that exploits both technological vulnerabilities and human psychology. From a legal standpoint, prevention is the strongest defense. Companies must implement robust cybersecurity protocols and provide continuous training to their employees, as human error is often the weakest link. For individuals, exercising extreme caution with unsolicited communications and understanding that financial institutions will never request sensitive data via email or text message is paramount. When fraud does occur, immediate reporting to both the bank and the OIJ is crucial to initiate the investigation and maximize the chances of recovery, although the judicial process can be complex.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s insight underscores a crucial reality: effective defense against electronic fraud requires a two-front approach, reinforcing technological safeguards while simultaneously arming individuals with critical awareness. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his valuable legal perspective, which highlights that our own diligence is often the first and most powerful line of defense.
This initiative directly addresses a system that has long been criticized for favoring financial entities over the individuals whose savings they are entrusted to protect. The core principle is that the custodian of the funds should bear a greater responsibility for their security.
In other words, it stops placing the entire weight on the victim and recognizes that whoever guards the money must assume responsibility.
Óscar Izquierdo, PLN Deputy
Under the new framework, a customer who has been a victim of electronic fraud would have 30 calendar days to file a formal claim with their bank. This claim must be accompanied by a corresponding police report filed with the Judicial Investigation Organism (OIJ). Once submitted, the financial institution has a 120-day period to conduct a thorough investigation into the matter.
If the bank fails to provide a conclusive response within this four-month window, it will be legally obligated to refund the full amount to the customer within ten days. The bank would retain the right to pursue the matter in court subsequently if it believes it can recover the funds, but the immediate financial relief would go to the consumer.
However, the law includes specific exceptions to protect banks from abuse. The institution would not be liable in confirmed cases of self-fraud, malicious intent by the account holder, or in fraudulent transfers made between the account holder and their spouse, domestic partner, or relatives up to the second degree of consanguinity.
The legislative push comes as Costa Rica grapples with an explosion in cybercrime. Data from the OIJ paints a stark picture: reports of electronic fraud skyrocketed from 3,136 in 2022 to a staggering 10,027 in 2025, marking a 41% increase in just the last year alone. The daily average of such reports jumped from 19 to 27 between 2024 and 2025.
Experts warn that if this exponential growth continues, electronic fraud is on track to become the nation’s most prevalent crime by the end of 2026, surpassing traditional offenses like robbery and theft. This alarming trend underscores a societal shift where a smartphone can pose a greater financial threat than walking through a dangerous neighborhood at night. Behind each statistic is a person facing an emptied bank account or debilitating debt they did not incur.
Cybercriminals employ an ever-evolving array of tactics, from sophisticated malware that steals credentials in the background to social engineering techniques. The most common scams involve phishing messages—texts, emails, or WhatsApp messages—that impersonate trusted entities like Correos de Costa Rica or the Ministry of Finance to trick victims into revealing sensitive information like passwords and card PINs.
While the bill has successfully passed its first debate, it must still clear a second round of voting to become law. Additionally, deputies from the Social Christian Unity Party (PUSC) have indicated they may challenge the initiative in the Constitutional Chamber, potentially delaying its implementation. Nonetheless, for thousands of Costa Ricans, its final approval would represent a crucial step toward financial justice.
For further information, visit pln.or.cr
About Partido Liberación Nacional (PLN):
The National Liberation Party is one of Costa Rica’s most significant and historically influential political parties. Founded in the mid-20th century, it adheres to a social-democratic ideology and has held the presidency on numerous occasions. The party plays a central role in the country’s legislative assembly, proposing and debating laws on a wide range of national issues.
For further information, visit pusc.cr
About Partido Unidad Social Cristiana (PUSC):
The Social Christian Unity Party is a major political force in Costa Rica, representing a center-right, Christian democratic ideology. The party has a long history in national politics, having also held the presidency and a significant number of seats in the legislative assembly. It often serves as a key opposition or coalition partner, influencing policy on economic and social matters.
For further information, visit poder-judicial.go.cr/oij
About Organismo de Investigación Judicial (OIJ):
The Judicial Investigation Organism is the primary investigative branch of Costa Rica’s judicial system. As the country’s main plainclothes police force, the OIJ is responsible for investigating complex crimes, collecting evidence, and carrying out forensic analysis to support criminal prosecutions. It plays a critical role in combating a wide array of illicit activities, including the rising tide of electronic fraud.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, the firm is defined by its profound dedication to principled practice and professional distinction. It consistently champions legal advancement through forward-thinking solutions, while maintaining a core philosophy centered on social responsibility. This commitment is demonstrated through its efforts to democratize legal understanding, thereby equipping citizens with the knowledge to foster a more just and enlightened society.
