The President of the Polish competition authority (UOKiK) has issued binding decisions requiring Alior Bank, mBank, BNP Paribas, and Bank Millennium to change their practices in handling unauthorized payment transaction reports from customers.

These decisions conclude nearly four years of investigations into how these banks processed claims of unauthorized transactions, during which the banks failed to consistently return funds within the statutory timeframes.

As part of the agreements, the banks will not only implement new practices moving forward but also reassess previously denied customer claims. This outcome highlights the importance of constructive dialogue between the authority and the banking sector, leading to solutions that protect consumer interests.

UOKiK's President emphasized the need to distinguish between authorization and authentication in payment transactions, asserting that proper authentication does not equate to consumer consent for a transaction. The authority has been advocating for clearer definitions and consumer rights in this area.

In addition to the binding decisions, UOKiK has been working with banks to introduce additional security measures to prevent unauthorized transactions, including AI systems and behavioral biometrics to detect suspicious activities.

While these four cases have concluded, UOKiK is still pursuing ten other investigations against banks for similar issues, indicating ongoing scrutiny in the sector.