Regulator wants banks to warn their customers about potential fraud

The National Bank has developed new rules for issuing payment cards and conducting corresponding transactions on them. The key novelty is the requirement for banks to warn their customers about potential risks of fraud. Even though the draft document is available for public consideration, it is expected to enter into force on January 1, 2024.

The National Bank has divided possible risks associated with payments into two categories: the first includes those associated with fraudulent actions of third parties, and the second is associated with transfers under the influence or at the request of third parties pretending to be public servants, law enforcement officers or bank employees.

Commercial banks will be obliged to warn customers about these risks when they are about to make a payment. In addition, the banks must notify their customers that a transaction might be canceled either by a recipient of a money transfer or a court.

The document also introduces new obligations for microfinance organizations (MFOs). When issuing microloans transferred directly on customers’ cards, they should «ensure the use of a separate special corporate payment card, issued and designed to carry out transfers of microloans to borrowers.» The Kursiv edition has already asked the National Bank to explain the meaning of this novelty.

Over the first nine months of this year, the Ministry of Internal Affairs reported 15,000 cases of fraud on the internet. About 3,000 of these fraudulent actions were committed on behalf of bank employees.

According to credit organizations, it is always a good idea to make purchases in trusted places, conduct transactions in a separate browser window and use only those websites that support secure connection (HTTPS).