Estonia plans to slow large bank transfers to fight fraud

Estonia is planning measures to combat fraud by making large bank transfers and ATM cash withdrawals slower, giving banks time to verify transactions. Additionally, preparations are underway to block Smart-ID confirmations during phone calls.

Estonia is preparing a series of anti-fraud measures that would introduce deliberate delays into large bank transfers and ATM cash withdrawals, allowing banks additional time to verify whether a transaction is legitimate before it is completed.

The planned changes are designed to tackle a growing wave of financial fraud, where criminals often pressure victims into authorising transfers or handing over cash while on the phone. By slowing down the process, authorities hope to create a window in which suspicious activity can be flagged and stopped.

Another measure under preparation would prevent users from confirming Smart-ID transactions while they are actively engaged in a phone call. This step targets a common fraud tactic in which scammers keep victims on the line while talking them into approving fraudulent payments through their digital identity app.

Smart-ID is widely used across Estonia and the other Baltic states as a secure digital authentication tool for banking, government services, and other online platforms, making it a frequent target for social engineering attacks.

The state has not yet announced a specific timeline for when these changes would come into force, but the preparations signal that regulators are treating payment fraud as a priority issue requiring structural solutions rather than relying solely on consumer awareness campaigns.