09:33, 29 June 2022 Page views 261 views

Bank of Russia may oblige banks to repay customers’ money stolen by fraudsters

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A new procedure for the return of non-cash funds stolen by fraudsters may be introduced in Russia. The bank will unconditionally and completely indemnify the client for the total amount stolen, Gazeta.Ru reports.

According to the publication that refers to a source in the central bank, on June 23, the interdepartmental commission of the Security Council of the Russian Federation discussed new anti-fraud measures and a mechanism for the return of funds. The innovation provides for a double check of suspicious transactions both on the side of the payer's and payee's banks.

“The Bank of Russia keeps records of actual and attempted fund transfers not authorized by the client. We communicate the information from the database to all organizations, and they, in turn, are obliged to use such information in their anti-fraud systems. At present, it is the payer's bank that checks the transaction for signs of fraud. We suggest that the beneficiary's bank should also conduct such a check. This will ensure a double control,” the publication writes with reference to the press office of the regulator.

The beneficiary's bank will be able to restrict access to the scammer's account if information about such an account is stored in the database, and ‘money mules’ will be unable to make transactions remotely.

Under the applicable laws currently in force, the bank is not obliged to return money to the victim of fraudsters if the transfer was made voluntarily. However, given that fraudsters use social engineering methods, almost all such transfers are made by citizens voluntarily under psychological pressure.