EU Adopts New Online Fraud Rules

• The European Union has agreed on new legislation to strengthen consumer protection against online fraud and hidden fees.
• Banks, payment providers, and online platforms will face stricter responsibilities, including liability for losses and removal of fraudulent ads.
• The rules also aim to improve transparency, access to cash, and customer service across the EU.

Stronger Safeguards for Consumers

EU member states and the European Parliament have reached an agreement on new measures to protect customers from online fraud, data leaks, and unclear charges. Payment service providers will be required to cover losses if they fail to implement effective fraud prevention systems. Suspicious transactions must be frozen to prevent further harm to consumers. These steps are designed to increase trust in digital financial services.

Accountability for Online Platforms

The legislation also places obligations on online platforms to remove fraudulent advertisements. Platforms that fail to act will be held liable for costs incurred by banks when reimbursing victims of fraud. Lawmakers argue that this measure addresses the growing role of digital platforms in spreading scams. By increasing accountability, the EU hopes to reduce the prevalence of misleading ads targeting users.

Additional Consumer Rights

Beyond fraud prevention, the rules seek to improve transparency in payment charges and guarantee better access to cash in rural areas. Payment providers will gain easier access to information from banks, supporting smoother transactions. Banks will also be required to provide human customer service rather than relying solely on automated chatbots. These provisions aim to strengthen consumer confidence and ensure fair treatment across the financial sector.

The agreement must still be formally adopted by both the Parliament and member states before taking effect. It is part of a broader EU effort to modernize financial regulations in response to rising digital threats. According to the European Central Bank, card-not-present transactions account for the majority of online payment fraud cases in Europe. The new rules complement existing initiatives such as the EU’s Digital Services Act, which also targets online platform accountability and consumer protection.