In the midst of a boom, instant transfers have a weak point: they are subject to more fraud than traditional transfers. To prevent this from hindering its development, a European regulation will impose two new security measures on banks. Find out which ones.
It only represents, according to the Banque de France, a little more than 6% of all transfers made in France. But this share should quickly explode. By the end of 2024, the price of instant transfers should go from around 1euro per piece, on average, … 0. This is, in fact, the will of European institutions. The European Parliament adopted on Wednesday February 8, a new regulation which requires banks to align the price of instant transfers on that of traditional SEPA transfers. And these are now systematically free when initiated independently, on the web or mobile…
The text must now be published in Official newspaper and will come into force 20 days after this publication. The banks will then have 9 months to apply this price alignment. Clearly, instant transfers should be free, in all banks, by the end of the year.
Instant transfer: fees banned from 2024?
A higher fraud rate
The new regulation, however, does not simply remove the price obstacle, which hinders the generalization of instant transfers. It also contains numerous measures aimed at improve security of this means of payment.
The instant transfer, in fact, is more exposed to the risks of fraudulent debit. In the first half of 2023, its fraud rate (i.e. the volume of amount misappropriated compared to the total amount exchanged) was 0.0425%. Nothing very alarming: it is a little less, for example, than that of the bank card (0.057%). On the other hand, it is much, much more, on the other hand, than that of transfers as a whole (0.0010%).
The reason is simple: the instant transfer is favored by fraudsters to empty bank accounts of their victims, particularly in the context of fake advisor scams. For them, it presents two big advantages: the money transfer is immediately (less than 10 seconds) and irrevocable. Clearly, the difference from a payment by traditional transfer or by bank card, the victim has no no way to reverse the fraudulent transaction.
Two solutions to limit the risk of fraud
What will banks have to put in place to secure these instant transfers? In addition to traditional methods (automated monitoring, daily ceilings, timeout period when adding a beneficiary, etc.), the regulation requires them to two new parades.
The first: they will have to provide their customers with recipient identity verification service. In short, verify automatically (and free of charge), on the basis of the IBAN, that the account receiving the transfer is indeed held by the right person. A device, call IBAN Check, which is already operational for certain operations, but which will have to be generalized. Banks will have to achieve this within 18 months.
Transfers: is your bank doing enough against fraud?
The regulation provides for another mandatory protection which will be in the hands of the user. Banks, in fact, will have to authorize their customers set a maximum amount, either per day or per operation for instant transfers. This limit, however, may be modified, or even lifted, at any time, without difficulty and with immediate effect, explains the text. Like what exists for bank cards, whose payment limits can now be raised, in a few clicks, from a mobile application.
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