From late December, several Russian banks have adopted a new protective measure that temporarily blocks large cash withdrawals at ATMs and prompts the institution to contact the cardholder to confirm the operation, Russian state news agency RIA Novosti reported on 31 December.
ATM withdrawal blocks in Russia: what customers need to know
Under the practice, when a customer attempts to withdraw a substantial sum, the transaction is initially blocked. A bank representative then phones the cardholder to verify the legitimacy of the withdrawal. Once the client confirms the operation, the withdrawal may be attempted again after a short interval, typically five minutes.
The measure is intended as an anti-fraud safeguard amid an increase in schemes that aim to empty accounts by deceiving or coercing cardholders. Banks have already introduced similar checks for large electronic transfers: in late December some lenders began asking customers to confirm familial ties with the intended recipient before authorising sizeable transfers. In that procedure the bank may contact the recipient to verify identity before releasing funds.
Financial institutions say the blocking is applied at the request of the client and is designed to prevent unauthorised movements of money. When a block is in place, a bank representative will contact the person who was due to receive a payment and request full identification details to ensure the transfer is genuine.
Consumer reaction is likely to be mixed. For many account holders the additional verification provides reassurance that banks are taking fraud seriously and protecting deposits. For others the new practise may cause inconvenience, especially when immediate access to cash is required for business payments, travel or time-sensitive purchases.
Practical steps for customers who expect to withdraw large sums include notifying their bank in advance, carrying alternative payment methods such as card or mobile payments, and allowing extra time for withdrawals to be verified. Those who rely heavily on cash—small business owners, market traders and older customers—should check with their bank about how to arrange branch-assisted cash withdrawals if speed is essential.
Bankers maintain that the short delay is a trade-off for greater account security. By confirming transactions with both senders and recipients, lenders aim to intercept fraudulent activity before funds leave accounts or are collected by criminals posing as relatives or associates.
The moves come as Russian banks and regulators face increasing pressure to strengthen consumer protections without unduly restricting access to financial services. How widely the ATM-block policy is rolled out, and whether regulators promote uniform guidelines, remains unclear. For now, the step is being presented as a voluntary safeguard that customers can opt into.
As with any new security routine, transparent communication from banks will be important. Clear guidance on thresholds for blocks, the verification process and expected timelines will help customers avoid surprise disruptions while preserving the benefit of added protection against fraud.
Key Takeaways:
- Russian banks have begun to block large ATM withdrawals and call cardholders to confirm transactions, aiming to combat rising fraud.
- After confirmation, customers can repeat the withdrawal; banks say the measure reduces unauthorised cash-outs.
- The policy follows similar safeguards for large transfers, including confirming relationships between sender and recipient.
