Banks must share data to prevent scams and fraud

Financial institutions and others authorized to operate by the Central Bank (BC) must share data and information about fraud and scams in the National Financial System (SFN) and in the Brazilian Payment System (SPB). The measure consists of approved standard by the National Monetary Council (CMN) and by the Central Bank, in a meeting last week.

The information was released this Tuesday (23) by BC. According to the autarchy, the objective is “to reduce the asymmetry of information in accessing data and information used to subsidize procedures and controls of these institutions to prevent fraud”. The BC informed that an electronic system should be created for the registration and consultation of data and information on indications of occurrences or identified fraud attempts. The deadline for implementation is November 1 of this year.

The issue of the regulatory norm was decided upon in view of the growth of digital means of financial transactions and payments and the increase in occurrences of fraud, scams and cyber crimes in the banking system. In 2021, more than 4.1 million occurrences were recorded, against 2.6 million in 2020 and 1.2 million in 2019.

“The norm will allow for the improvement of the capacity of the supervised institutions for preventing fraud, as well as improving their internal controls, having established the registration of the following minimum list of information to be shared: identification of who would have carried out or tried to carry out the fraud; description of the indications of the occurrence or attempt of fraud; identification of the institution responsible for recording the data and information and identification of the recipient account data and its holder, in case of transfer or payment of resources”, explained the BC.

cooperation network

According to the head of the BC’s Regulation Department, João André Calvino Marques Pereira, it will be a market coordination and cooperation network. “We are not talking about competition, we are talking about crimes that can affect any financial institution”, said Pereira, in a conversation with journalists to explain the measure.

“The entire market understands this need”, he added, noting that credit information service companies and other agents, for example, would be able to provide this service quickly.

Financial institutions will be responsible for using the data and information obtained in consultation with the electronic system, to develop internal management controls, preserving bank secrecy. They must obtain their customers’ consent for the processing and sharing of fraud data. According to the BC, this should be done over time by the banks.

Under the rule, data subjects will have free access to information concerning them, as well as may request the deletion or correction of registered data, in case of any errors, inconsistencies or other demands.

The Central Bank also informed that it has been taking measures to reduce and prevent fraud and scams. Among other norms are the requirement of cybersecurity policies, the improvement of security mechanisms in Pix, the permanent discussion with the institutions about new initiatives and supervision actions.