09:05, 18 November 2020 Page views 638 views

Suspicious card transfers can be blocked for 25 days

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EMV-lock.jpgBanks proposed to block transfers or payments by cards for 25 days if the client founds the payee a suspected fraudster. This follows from the amendments to the law on the national payment system proposed by the Association of Banks of Russia.

The changes are applicable to the activities  the banks may take to combat fraudulent transfers if the client has informed that card transactions are effected without his/her consent. The client must do this no later than the next day after the bank received a notification of the transaction. So far, the law has allowed a transaction to be only disputed before the funds are credited to the recipient's account. The deadline for the transaction suspension is five days.

The banks believe that the amendments, if and when adopted, may bring the share of refunds to 15-30% of the total amount of stolen funds. According to the Central Bank, in the first half of 2020, fraudsters managed to commit over 360 thousand unauthorized transactions and steal some 4 billion rubles from bank clients, with about 485 million rubles (12.1%) being returned by the banks to customers. 83.3% of the attacks were completed through social engineering. The explanatory note says that fraudsters manage to withdraw funds from the account within the first hour after the transfer in 50% of cases, within two to three hours – in 47% of cases, within a day – in 3% of cases.



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