Its implementation will start from the first of next December.. It includes stopping the completion of transactions and refunding money to customers

The Central Bank: New instructions to protect bank cards from fraud

The Central Bank called on banks to educate customers about the methods used in fraudulent activities.

archival

The Central Bank issued new instructions to banks aimed at protecting credit and direct debit cards from fraud, stressing the need to implement them as of the first of next December, according to a circular signed by the Governor of the Bank, Khaled Muhammad Balama, sent to all banks and finance companies operating in the country.

The circular, which "Emirates Today" obtained a copy of, stated: "In order to protect banks and their customers from the growing threat of fraudulent transactions made on debit and credit cards, banks must abide by the following instructions by December 1, 2021."

Risk Management

The circular added that banks must ensure that their approved risk management systems and information technology controls are strong enough to detect unauthorized transactions made on credit and debit cards, and banks must have systems that ensure that such transactions are stopped immediately before conducting No money transfer.

She stressed that banks must verify that their customers can access multiple communication channels, through which they are alerted and informed of any attempt to carry out fraudulent activity on their cards, and enable them to verify such attempts immediately, and the bank's systems must allow customers to disable or reactivate their cards when the transaction is verified by the customer.

refund

The circular clarified that in the event of unauthorized fraudulent transactions, banks must refund the money to customers in a timely manner, in accordance with the contractual terms that govern the relationship with the concerned customers.

He stressed the banks to ensure that debit and credit card customers are aware of their contractual rights, related to the return of funds in the event of unauthorized transactions.

audit

In its circular, the Central Bank stressed that banks must assign a third party to conduct a review of the systems, processes and human resources, which are responsible for detecting and preventing fraudulent operations on cards, and submit a report on the results of that review to the bank’s management, in addition to the fact that the bank must also provide A copy of this report for the Central Bank, accompanied by an action plan for making improvements by December 30, 2021, and a copy of the report sent to the email of the Central Bank under the title “Report on the detection and prevention of card fraud.”

Reports

According to the circular, banks must send to the Central Bank quarterly reports containing statistical data on cases of fraud through cards, so that these reports include statistics indicating the prevailing trends in fraud through cards and the measures taken by the bank, in addition to that These reports should cover all quarters of the year, starting with a report on the fourth quarter of 2021, due to be submitted in the first quarter of 2022.

raising awareness

The Central Bank stressed the importance of banks working to increase customers' awareness of the methods used in attempts to carry out fraudulent activities, and to ensure that they are not exposed to deception that makes them overlook fraudulent activities on their cards.

• Banks must send quarterly reports to the Central Bank regarding cases of card fraud.

Follow our latest local and sports news and the latest political and economic developments via Google news