EU Agrees On New Rules To Strengthen Protection From Online Fraud

Illustration of online banking applications (photo: Doc. pexels)

JAKARTA The European Union has finally reached an important agreement to tighten protection for citizens from online fraud. European member states and Parliament approved a new set of rules requiring banks and payment service providers to increase security, remove hidden costs, and keep consumer data safe.

This rule requires banks and payment service providers to bear customer losses if they fail to implement adequate fraud prevention mechanisms. In addition, financial institutions are also required to freeze transactions that are considered suspicious before funds actually move.

Digital platforms are also dragged into this new regulation. They will be responsible for removing fraudulent advertisements, and if they fail, the platform will have to bear the costs incurred by banks to compensate customers for the scams stemming from the ads.

This regulation also offers greater transparency over payment costs, expands access to cash, especially in rural areas, and makes it easier for payment service providers to get information from banks. Banks are also required to provide human customer services and should not only rely on chatbots as the main line of communication.

This agreement still has to be formally adopted by the European Parliament and member states before it officially takes effect. This situation opens up a new chapter in the European Union's efforts to suppress cybercrime and strengthen public confidence in digital financial services, a step that has become increasingly relevant in the era of an ever-growing cashless economy.