Maciej Pitucha
FRAUD DETECTION
Maciej Pitucha
VP of Data Mangopay
THE UK ’ S MANDATORY REIMBURSEMENT RULE ADDRESSES A CRITICAL GAP IN PROTECTIONS
Maciej Pitucha
How has the UK ’ s 2024 Mandatory Reimbursement Requirement spurred FIs to shore up security ? As new threats emerge , so do new regulations . With GDPR safeguarded online data , PSD2 protected e-commerce consumers and financial transactions on the rise , the Digital Operational Resilience Act ( DORA ) and the UK ’ s mandatory reimbursement requirement sets a new standard for fraud prevention .
The UK ’ s mandatory reimbursement rule , effective in 2024 , addresses a critical gap in protections . Unlike payment cards , which offer chargeback mechanisms , account-toaccount payments left APP fraud victims with little recourse . This regulation ensures fair treatment for victims , compelling financial institutions ( FIs ) to reimburse losses and driving them to prioritise fraud prevention like never before .
Now that DORA is in play too , how much more important is security ? DORA , meanwhile , prioritises operational resilience , pushing financial institutions ( FIs ), fintechs , and PSPs to strengthen their systems against modern threats like Fraudas-a-Service . Together , these regulations demand a proactive approach to fraud prevention , as fraudsters ’ tactics evolve rapidly , making it clear that historical transaction patterns alone are not enough .
To meet these challenges , FIs are adopting advanced tools like real-time data analysis .
88 March 2025