Overview
- EU lawmakers reached a political agreement that, for the first time, extends liability to major platforms such as Meta and TikTok when scams originate on their services.
- Banks will be required to reimburse customers for losses from bank-impersonation schemes or unauthorized payments when safeguards fail.
- Platforms may have to compensate banks for costs tied to fraud when they do not remove reported scams, including fraudulent advertisements.
- Payment providers must deploy adequate anti-fraud systems, freeze suspicious transactions, and face liability for losses if their controls fall short, with added measures on clearer fees, access to cash, improved data sharing, and guaranteed human support.
- The package builds on the DSA and DMA, still requires formal adoption, and drew immediate criticism from tech groups who argue it conflicts with the DSA’s ban on general monitoring.