From October 1, 2025, large banks will be required to integrate new functionalities within their mobile applications, enabling customers to quickly report fraudulent transfers and obtain electronic certificates for police reports. This substantial reform is being introduced by the Bank of Russia to streamline the process of submitting claims to law enforcement agencies.
Customers will not only be able to report fraudulent activities but will also be prompted to answer the bank's inquiries about whether they authorized transactions under duress from fraudsters.
Importantly, starting from the same date, all banks must accept applications from individuals who, using tokenized (digital) cards, mistakenly transferred cash to accounts controlled by fraudsters through ATMs, regardless of whether these individuals hold accounts with said banks.
Further regulations effective March 29, 2025, stipulate banks notify parents or legal guardians of clients aged 14-18 about the issuance of cards and every transaction associated with the child’s account, thereby enhancing transparency and oversight.
During the Ural Cyber Security Forum held recently, the head of the Bank of Russia, Elvira Nabiullina, highlighted the alarming statistics of fraud, reporting over 27 billion rubles were stolen from citizens by fraudsters last year. She also pointed out the tendency of banks to underreport the actual incidence of cyber fraud.
Nabiullina mentioned the gap between crime and reporting, stating only 42.8% of victims approach their banks for assistance, and even fewer, only 30%, reach out to the police. This raises significant concerns about consumer protection, as some institutions failed to document incidents of fraud if clients were misled but executed the transactions themselves.
"We need to take these issues seriously to safeguard our customers and reinforce measures against fraud," Nabiullina remarked during the forum. These new directives are aimed at enhancing protection for customers and tackling the growing problem of financial fraud.
Adding to the legislative framework aimed at combating cyber fraud, the State Duma, under the leadership of Vyacheslav Volodin, is set to evaluate new proposals intended to fortify protections against digital deception. Measures like these are increasingly necessary as the digital age progresses.
The push for these reforms reflects the urgent need to adapt banking practices to modern technological risks, ensuring consumers are shielded from financial exploitation.
These regulatory changes come not just as reactions to past events but as proactive steps to empower consumers and secure the banking environment against mounting fraudulent schemes. With technology advancing, protective measures must evolve simultaneously, creating systems whereby customers are notified immediately of any suspicious activity.
Banking institutions have been cautioned to take these directives seriously, fostering trust and safety among clientele by reporting fraudulent activities comprehensively rather than downplaying them.
The proactive measures being instituted represent a significant step forward; they signal recognition of the reality faced by customers who frequently navigate the perilous waters of modern banking, often without adequate reassurance of their security.
These regulatory actions not only display the urgency to adapt to fraudulent activities but also reflect the growing acknowledgment from lawmakers and banking authorities of their responsibility to safeguard citizens. The implementation of these measures will not only benefit the direct victims but also help to build the credibility of banking institutions, assuring customers their funds are secure.
Overall, the introduction of these enhancements to mobile banking applications symbolizes the readiness of the financial sector to evolve, adapting to the reality of cyber threats, and demonstratively takes consumer protection seriously.
