The European Union is preparing sweeping changes that will alter the way people typically use mobile banking apps. Whereas previously, increasing transfer limits or activating services remotely happened instantly, the new European initiative will introduce a mandatory delay. This innovation is aimed at protecting customers from fraudsters, but it will significantly impact everyday financial transactions under the current conditions in the country.
The new rules will become part of the future Payment Services Regulation (PSR). European institutions reached a political agreement on the document, and the final compromise text was drafted in the spring. Although the final legislative process is still underway, the general outline of the future protection system is already known.
Four Hours Against Phone Scammers
The main reason for introducing a mandatory waiting period is the prevalence of schemes involving psychological pressure. Fraudsters often call victims, posing as bank security staff or police officers, and convince them to immediately transfer funds to a “secure account.” If a customer’s daily limit is set too low, the scammers instruct the person during the same call on how to raise it.
According to the draft regulations, any remote increase in the limit will take effect only four hours after the request is made. Banks will be required to notify the customer of such an attempt and inform them about the security verification process. Importantly, the reverse action—reducing the limits—will remain immediate and will not be blocked.
How the protection will work and whether it can be disabled
The developers have built in flexibility for users, but no one intends to leave loopholes open for fraudsters:
- Removing restrictions. Customers will be able to manage the security period or disable it entirely if they wish.
- Blocking deactivation. If the protection is already active and the user decides to disable it remotely, this command will also take effect only after a four-hour waiting period. This will prevent criminals from forcing a victim to disable the protection and immediately raise the limit during a single call.
- App Activation. A similar waiting period will be introduced for remotely registering mobile banking on a new device, accompanied by a notification via alternative communication channels.
When the new rules will take effect at banks
Once all procedures are completed and the regulation is officially published in the Official Journal of the EU, financial institutions will have a transition period. According to the plans, most of the requirements will become fully effective 21 months after the document finally enters into force. TechByte provides more details on how these changes will affect daily banking operations.
