Starting from July 25, 2024, amendments to Russia’s “National Payment System” law will come into effect, outlining procedures for banks to refund funds to clients stolen by fraudsters.
Mary Valishvili, an associate professor at the Department of Public and Municipal Finance at Plekhanov Russian University of Economics, explained to the Prime agency the circumstances under which banks will be obligated to refund stolen funds.
Upon the amendments taking effect, Russian banks will be required not only to monitor transactions but also to block accounts and access to remote services for clients engaged in withdrawing and cashing out stolen money.
A bank must refund stolen funds to a client if they authorized a transfer to a fraudulent account listed by the Central Bank. Additionally, the credit institution must compensate for loss if it failed to notify the client of a banking transaction on their account without their consent and did not block the card after it was reported lost.
Moreover, banks will gain the right to block any suspicious transactions for up to 48 hours. During this period, the account owner must either confirm the transfer or request its cancellation.
According to Mary Valishvili, some large banks have already begun preparing for stricter transaction monitoring by optimizing their anti-fraud systems.
Photo: freepik.com