Central Bank of Russia to Simplify Refunds for Victims of Cybercriminals

The Central Bank of Russia has decided to make it easier for citizens who have fallen victim to cybercriminals to get their stolen money back, according to Artem Sychev, Deputy Head of the Central Bank’s Information Security Department, as reported by Izvestia.

According to Sychev, the new measure will introduce the automatic blocking of the disputed amount in the suspected fraudster’s account immediately after the victim files a complaint. This will help prevent the theft of funds in many cases.

Why Immediate Blocking Is Important

Banks emphasize the importance of instantly blocking funds because, in half of all cases, criminals withdraw stolen money within an hour of the transfer. In 47% of cases, the money is withdrawn within two to three hours, and only in 3% of cases do the funds remain in the account for up to a day. Criminals often use a chain of transfers and list a front person as the initial recipient.

Currently, banks do not have the legal authority to block funds credited to fraudsters’ accounts and cannot refuse to issue the money, the report notes.

Proposed Legislative Changes

According to Alexey Voylukov, Vice President of the Association of Russian Banks (ARB), the banking community has prepared a draft law that would allow for the automatic blocking of the disputed amount in the recipient’s account for 25 days.

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