NatWest introduces daily transfer limits to tackle fraud - FStech

NatWest, Royal Bank of Scotland, and Ulster bank currently have a default bank transfer limit of £20,000 per day, which will be reduced to £ ... LatestNews What’sinstoreforFinTechin2022? Acornsco-founderraises$20mforembeddedfinanceplatform Thisyear’smost-readFStechstories SWIFTtoexploredevelopmentoftokenisedassets MetroBankfined£5.4mforfailuresinregulatoryreporting ‘Oneinfive’largeenterpriseswillusedigitalcurrenciesby2024 NatWestintroducesdailytransferlimitstotacklefraud ByAlexandraLeonards 24/5/2021 NatWestistoenablecustomerstosetdailybanktransferlimitstohelpprotectcustomersagainstfraud. Thebankhopesthemove,firstreportedbyWhich?Money,willreduceauthorisedpushpayment(APP)scamswherevictimsaretrickedintotransferringmoneyintoacriminalaccount. ThenumberofreportedAPPscamsroseby22percentlastyear,withscammersstealing£479million,anincreaseof5percentonthepreviousyear. NatWest,RoyalBankofScotland,andUlsterbankcurrentlyhaveadefaultbanktransferlimitof£20,000perday,whichwillbereducedto£5,000perday. Customerswillbeabletochangethedailytransferlimitontheironlineaccounts,makingithigherorlowerthanthe£5,000limit.Thelimitappliestodigitalpaymentsonly,nottransfersrequestedbyphoneorinbranch. NatWestGroupsaidthat95percentofitscustomershaveneverpaidsomeoneelsemorethan£5,000. Which?askedthelargestcurrentaccountprovidersiftheyplantofollowNatWest’sleadandallowcustomerstosettheirowncaps. NationwideandVirginMoneysaidtheyareconsideringfollowingsuit.ButBarclays,HSBC,LloydsBankingGroup,MetroBank,Santander,Starling,TheCo-operativeBank,andTSB,saidtheyhadnocurrentplanstointroduceadailytransferlimit. BarclayssaidthatpaymentlimitsareassessedregularlybutfornowcustomerscanonlysettheirowndailyATMlimitandspendinglimitsontheircards. HSBCalsosaidthatpaymentlimitsareroutinelyreviewed. TSBsaidithasn’tseencustomerdemandforflexibletransferlimitsbutwillkeepitsapproachunderreview. MetroBanksaidisitcontinuingtoexplorethepossibilityoftransferlimits. StarlingtoldWhich?thatit’s“notconvincedbytheprotectionitwouldprovide”butsaiditisexploringanewapproachtomanagingpaymentlimits,usingdatatoidentifyunusualpayments. “Wewanttobeabletoassessindividualpaymentsthatareoutofcharacterrelativetothecustomer’spaymenthabits,”thechallengerbanksaid.“Weareintheprocessofbuildingandimplementingasolutionthatwilllookatthepaymentincontextofthecustomer’saccount,thereasonforpaymentandtheirrelationship/historywiththedestinationofthefunds,todetermineifweneedmoreinformationbeforethepaymentcanbereleased." Which?explainedthatitisstillyettobeseenifcustomer-controlledtransferlimitsbecomeanimportantanti-fraudmeasure. Butlimitsdogivecustomersmorecontrolovertheirownnormalbehaviourandactasanotherlayeroffriction. ANatWestspokespersonsaid:“Italsohelpsinasituationwhereafraudsterhastakencontrolofacustomer’saccountaswithoutthecardreadertheywouldnotbeabletoincreasethedailytransferlimit.” ShareStory: RecentStories NatWestintroducesdailytransferlimitstotacklefraud READSTORY FCAextendsdeadlineforSCAcompliance READSTORY Financialmarketweaknesses‘responsible’forpandemicdysfunction,saysBoE READSTORY NewBusinessFrontiersYourbrowserdoesnotsupportHTML5video.FStech’sMarkEvansdiscussesthefutureoffinancialserviceswithLiuJianningofHuawei,coveringthelimitationsthatcurrentthinkingcanimpose,howfinancialinstitutionscanembracetechnologytobebothagileandresilient,andmakingspacefortheorganisationtofocusonthejobofcreatinginnovativebusinessmodelsandondeliveringbusinessvaluefortheircustomers. TheFutureofIntelligentFinanceYourbrowserdoesnotsupportHTML5video.FStechGroupEditorMarkEvanssitsdownwithJasonCao,PresidentofGlobalFinancialServicesBusinessUnit,EnterpriseBGatHuaweiaheadofitsIntelligentFinanceSummitwhichwasheldon3rdand4thofJuneinShanghai.ThisQ&Adelvesintokeytrendsindigitaltransformationofthefinancialservicesindustryaswellasalookathowdata,roboticinfrastructure,intelligentstorageandinnovativetechnologiesareshapingthefutureforFSIs. 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