EU Implements Stricter Rules to Combat Online Payment Fraud

The EU and European Parliament have agreed on stringent rules to protect customers against online fraud. These rules hold payment service providers liable for customer losses due to inadequate fraud prevention, require transparency in charges, and mandate human customer support. Online platforms must also remove fraudulent ads.

The European Union and the European Parliament have reached a consensus on enforcing tougher regulations for banks and payment service providers. The move aims to better shield consumers from online fraud, eliminate hidden fees, and prevent data breaches, according to an announcement made on Thursday by the Parliament.

Under these new regulations, payment service providers will be held accountable for any customer losses if they fail to implement effective fraud prevention methods. The rules mandate these providers to halt suspicious transactions. Additionally, online platforms are tasked with removing fraudulent advertisements or face liability for any associated reimbursement costs incurred by banks.

The legislation is expected to enhance the transparency of payment charges, ensure improved access to cash in remote areas, and facilitate information sharing between payment providers and banks. Banks are also required to offer human customer assistance, moving beyond the limitations of chatbots. These rules await formal adoption by Parliament and the member states before coming into effect.

(With inputs from agencies.)