In a move to protect citizens from financial crimes, the Bank of Russia has expanded the list of signs of fraudulent operations. Effective July 25, 2024, the regulator’s new order will increase the criteria for suspicious transactions from three to six. Concurrently, a new law will come into effect to counter dubious operations using these criteria.
One key update is the ability to freeze transactions between accounts where fraudulent activities have been detected by the banks’ anti-fraud systems. Banks will now have the authority to block such transactions, even without a report from the affected customers or transferring the attackers’ accounts to the Bank of Russia database, keeping the information solely within their own database.
Another significant criterion will be the presence of information on a criminal case initiated against the recipient of funds. Banks can receive this information through various channels, not limited to direct exchanges with law enforcement agencies on the Financial Bank of Russia’s platform. Customers or other relevant parties can submit documentation confirming the initiation of a criminal case, prompting the bank to halt fund transfers.
Furthermore, banks must consider data from third-party organizations indicating potential fraudulent activities. For instance, information from communication operators about unusual phone activity before a money transfer or a surge in incoming messages from new numbers, including instant messengers, should be taken into account.
In addition to the new criteria, banks will continue to utilize existing indicators of suspicious operations. This includes suspending money transfers to accounts flagged by the Bank of Russia’s fraudulent account database and preventing transfers that deviate from a client’s typical transaction pattern in terms of amount, frequency, timing, and location. Banks are also required to block transactions originating from devices previously associated with fraudulent activities documented in the regulator’s database.