WALLESS Senior Associate Kaisa Saarmann: Banks gain broader powers to suspend suspicious payments

In many payment fraud cases, the victim authorises the payment themselves. Proposed legislation in Estonia would give banks, payment institutions and electronic money institutions more tools to respond to suspected fraud.

Similar measures are also included in the EU’s Proposal for a Payment Services Regulation. Estonia plans to introduce some of these measures earlier. The reason is practical: payment fraud and the losses it causes continue to grow.

Where there are reasonable grounds to suspect fraud, payment service providers could temporarily suspend a payment and apply additional security measures. If the suspicion cannot be resolved, they could refuse the payment order to prevent potential fraud.

WALLESS Senior Associate Kaisa Saarmann explains in the September issue of @RUP what new tools the proposed legislation would give banks to prevent fraud and what the changes could mean for their customers.

Read more (in Estonian): https://rebrand.ly/ae8b37