Central Bank starts blocking Pix keys used in scams and frauds

The Central Bank (BC) will start blocking, as of this Saturday (4), Pix keys used for scams or frauds. The mechanism was discussed during the Pix Forum – an advisory committee formed by participants representing the financial system and civil society – aiming to strengthen the security of the instant payment system. According to the BC, financial institutions flag the CPF or CNPJ, and the user’s Pix key in notorious cases of suspected fraud. Therefore, when a key linked to a user with a fraud flag is consulted, the BC system will show an error, preventing a transfer from being completed to that flagged user or key. Contestation button This week, the Central Bank also launched the functionality of the contestation button. The purpose of the tool, formally known as the MED (Special Return Mechanism) self-service, is to allow the contestation of a transaction completely digitally – without the need for human interaction. The new measure can be activated through the user’s financial institution app. Currently, the return of funds is only made from the account originally used in the fraud. However, the issue is that fraudsters can quickly withdraw the funds from this account and transfer them to other accounts. Therefore, when the client files a complaint, it is common for this account to no longer have funds to enable the return. The button does not apply to cases of user errors or regrets, emphasized the BC.