The Law on Bank Сard Blocking Come Into Force in Russia
OREANDA-NEWS The Bank of Russia will oblige banks to assess the risks of unauthorized payments on cards and accounts: in case of detection of signs of doubtful transfer of funds, such operation will be temporarily blocked with the permission of the client; signs of the transfer of funds without the consent of the client is established by the regulator.
The relevant Federal law comes into force on Wednesday.
According to the law, credit organizations will be obliged to block credit cards and electronic transfers from customers ' accounts for up to two working days if the Bank suspects that the transaction was made without the consent of the account holder. The blocking will be carried out only with the permission of the client, with whom the Bank will be obliged to immediately contact by phone or electronic communication channels and inform him about the suspicious transaction.
If the client informs the Bank that he/she did not perform a particular operation, the transfer or the means of payment will be blocked and the attackers will not be able to dispose of the funds. If the client cannot be contacted, the account is frozen for two working days and the client can cancel the payment during this time. Upon expiration of the specified period, the account is automatically unlocked and the money goes to the specified details.
As previously explained in the Central Bank of the Russian Federation, the category of doubtful fall operations to transfer funds from the account of a legal entity to many accounts of individuals in other regions, as well as operations with "non-standard" purpose of payment and not peculiar to a particular client financial behavior.
For example, it can be a non-standard purchase from a pensioner's card or a withdrawal of a large amount of cash. Banks will also have to implement mechanisms to block such transactions and amend existing contracts with customers.
In turn, the Bank of Russia will soon develop and publish a list of signs of operations that may be potentially fraudulent.
According to the Bank of Russia, in 2017, as a result of more than 300 thousand unauthorized operations in Russia, about 1 billion rubles were stolen from the accounts of citizens. Each year, the number of attempts at theft is growing, but the stolen amounts are reduced. In General, in 2017, the volume of transactions using payment cards increased by a quarter compared to 2016 - to 61 trillion rubles from 49 trillion rubles.