EU tightens fraud protection, platforms to be held accountable

The European Union has agreed on stricter rules to better protect consumers from online fraud.

Banks and payment services will be obliged to put in place effective preventive mechanisms - or suffer financial losses from their customers.

The new legislation also orders the freezing of suspicious transactions and forces online platforms to remove fraudulent advertisements. If they fail to do so, they will be liable for the damage caused to customers.

It also aims for greater transparency on fees, better access to cash in rural areas and stronger customer rights - including the obligation for banks to provide real, not just chatbot, customer support.

The rules still need to be formally endorsed by the European Parliament and Member States.

(reuters, swag)