Additional verification for money transfers and loan issue: expert board discussion
Additional verification will help prevent telephone frauds and unauthorised use of another person’s data to raise a loan. Proposals regarding legal requirements for such verification were discussed by the Expert Board for Financial Consumer Protection under the Bank of Russia.
Currently, the Public Services Portal has two-factor authentication of a borrower aimed at reducing fraud risks, but this procedure is not mandatory. Two-factor authentication makes it more difficult for criminals to raise a loan using another person’s name, even if they get illegal access to the login and password of an account on the portal because they will also be required to enter a code from SMS.
The Expert Board also discussed the proposal to allow an authorised person chosen by a bank customer to confirm or decline the authoriser’s large money transfer. Earlier, the regulator recommended that banks should offer such ‘confirming hand’ option to protect customers with disabilities and elderly people.
The Expert Board plans to refine these proposals and submit them to the Bank of Russia.