UK banks to impose four-day hold on suspicious transactions

When commenting on the announcement, representatives underlined that considering the increased risk of fraud and the negative impact it has on both the communities and the economy, the government plans to protect individuals by giving banks more time to investigate suspicious payments. Also, it is mentioned that this represents a positive step in the fight against fraud while not affecting the vast majority of everyday payments. On the other hand, these measures must be leveraged in a careful and targeted way and financial companies, regardless of size, should also ensure they share intelligence and collaborate with the police and other authorities to close down accounts used for fraud.

Furthermore, customers are set to be informed by financial institutions if their payment is delayed due to the transactions being suspected as fraudulent. In addition, banks will need to explain what the customer needs to do to unblock the payment. By imposing a need for evidence to trigger a delay, both individuals and businesses will be protected against unnecessary payment delays. Also, financial institutions will need to compensate customers for any interest or late payment fees they incur due to delays.