To enhance consumer protection and prevent potential financial fraud, the National Bank of Georgia (NBG) is tightening existing requirements related to payment services.

Specifically, amendments are being introduced to the regulations on Strong Customer Authentication and the Protecting Consumer Rights in the Provision of Financial Services. These changes aim to strengthen safeguards for vulnerable groups, particularly customers aged 60 and above, and improve protection against fraudulent schemes.

The updated regulations are aligned with international best practices and introduce additional requirements obliging payment service providers to apply higher risk management standards to certain transactions initiated from accounts held by customers aged 60 and above.

Under the new framework, to prevent the execution of electronic payment transactions resulting from potential fraudulent activity, payment service providers will be required to implement additional protective measures within existing monitoring mechanisms specifically for customers aged 60+.

In particular, providers must temporarily suspend, or where suspension is not feasible, refuse the execution of a transaction initiated by the customer if it is deemed high-risk. A transaction will be classified as high-risk if:

• the transaction amount exceeds GEL 500 and is associated with activities carrying a high fraud risk profile, including online trading (“forex”), investment schemes, gambling, or virtual asset-related activities; or
• unusual spending patterns or behavioral anomalies are detected.

In cases where a high-risk transaction is identified, the payment service provider will be required to contact the customer and provide relevant information to support better decision-making, thereby reducing the risk of manipulation by fraudsters.

Additionally, customers will be granted a 48-hour period after initiating a high-risk and/or suspicious transaction to make a final decision and confirm whether to proceed with the transaction.

At the initial stage, the new regulation developed by the NBG will enter into force in September and will apply only to card-based transactions.

It should be noted that protecting consumer rights particularly those of pension-age individuals remains a key priority for the NBG. Accordingly, the Bank continues to actively enhance the financial sector environment, including by promoting trust, stability, and transparency.

The NBG will continue to monitor fraud risks and take appropriate action as necessary.