BANK FRAUD ON THE RISE IN HUNGARY: CENTRAL BANK ISSUES NEW GUIDELINES TO PREVENT SCAMS

The Growing Problem of Bank Fraud in Hungary

The National Bank of Hungary has issued a new recommendation aimed at preventing fraud through payment services, in response to the growing number of scams in the digital space. According to the bank’s data, electronic payment services have become increasingly vulnerable to new forms of fraud, prompting the need for enhanced security measures.

Key Highlights of the Recommendation

• Clear Contract Terms: Service providers must ensure that framework contracts with clients do not contain clauses that would excuse grossly negligent behavior in cases of unauthorized payment transactions.
• Customer Notification: Providers must notify customers about new cash substitute payment instruments, allowing them to opt-out if they did not initiate the application or registration.
• Swift Action on Suspected Abuse: Suspected abuse orders must be withdrawn and amounts recovered as soon as possible after customer reporting.

The Expectations of the National Bank

The National Bank of Hungary expects service providers to balance fraud prevention with minimal impact on customer experience. Compliance with these guidelines will be monitored through control and monitoring activities.

A Safer Digital Payments Environment in Hungary

By implementing these measures, payment service providers in Hungary aim to reduce the risk of bank fraud and protect customers from financial loss. The new guideline is a significant step towards establishing a safer digital payments environment in the country.