The Brazilian Federation of Banks (Febraban) has proposed changes to the Special Return Mechanism (MED) to the Central Bank, a tool that allows disputes regarding transfers made via Pix. The MED 2.0 project will be developed throughout the second semester and is expected to be implemented by the end of next year.
The main change proposed by Febraban to the Central Bank is regarding the blocking of improperly transferred funds. Currently, the MED only blocks the funds in the first receiving account, but in cases of fraudulent transfers, criminals quickly send the money to other accounts in a cascade effect. Febraban has proposed that the blocking be allowed up to the other layers of money triangulation to reduce fraud, scams, and crimes. This idea has been accepted by the regulator.
“We have already observed that criminals spread money from scams and crimes across multiple accounts very quickly, so it is important to improve the system to reach more layers,” said Walter Faria, the deputy director of Services at Febraban.
The MED allows customers to dispute transfers in case of a crime, scam, or fraud within 80 days from the date the Pix was made. The complaint blocks the funds in the receiver’s account for analysis, and if deemed valid, the funds are returned. However, the return depends on the availability of funds in the receiver’s account.
As a result, crimes involving Pix have been difficult to reimburse, as criminals move the money to other accounts, often opened in the names of third parties. In order to combat this issue, Febraban and the Central Bank are working on implementing these changes to the MED to enhance security and reduce fraudulent activities associated with Pix transfers. The new measures are aimed at protecting customers and ensuring a more secure and reliable payment system for all users.
