Civil liability and cyber insurance for electronic bank account hacking under Jordanian law: a doctrinal and comparative analysis

Introduction The rapid expansion of electronic banking has significantly increased exposure to cyber risks, including phishing attacks and unauthorized electronic payment transactions. These developments raise complex legal questions concerning civil liability, loss allocation, and compensation mechanisms, particularly within legal systems that lack specialized regulatory frameworks. Methods This study employs a doctrinal and comparative legal methodology. It analyzes the applicable provisions of Jordanian civil, commercial, and banking law, alongside relevant regulatory instruments, and compares them with selected foreign legal frameworks, including European payment services regulation, South African jurisprudence, and U.S. consumer protection laws governing electronic fund transfers. Results The findings reveal that Jordanian law relies primarily on general fault-based liability principles under the Civil Code and Commercial Code, without establishing a specific legal regime for unauthorized electronic transactions. This approach imposes a substantial evidentiary burden on customers, despite banks' superior technical control over digital payment systems. In contrast, comparative legal systems increasingly adopt risk-based or hybrid liability models that favor consumer protection and institutional responsibility. The analysis further demonstrates that cyber insurance, while recognized internationally as a key mechanism for risk allocation and compensation, remains underdeveloped and insufficiently integrated into the Jordanian legal and regulatory framework. Discussion The study concludes that the current Jordanian legal framework is inadequate to address the systemic risks associated with electronic banking. It proposes the introduction of a statutory regime governing unauthorized electronic payment transactions, including presumptive bank liability, clearer allocation of risk between banks and customers, and the integration of cyber insurance as a complementary compensation mechanism. Such reforms are essential to enhance consumer protection, ensure effective compensation, and maintain financial system stability.