Michael Freilich calls for concrete action against phishing: “Victims must no longer be left to fend for themselves”

“Phishing is no longer just about a handful of unsuspecting people falling for a suspicious email. It is organised crime that claims new victims every single day. That is why we need to do more than simply teach people not to click on suspicious links. Above all, we must crack down harder on the criminals behind the money flows.” Belgian MP Michael Freilich is calling for concrete measures to tackle phishing.

Phishing remains a persistent form of financial crime. A recent parliamentary hearing highlighted significant gaps in victim protection and cooperation between banks, public authorities and the police. In response, MP Michael Freilich is calling for targeted action to strengthen the fight against phishing.

What measures is Michael Freilich proposing to combat phishing?

Faster blocking of fraudulent transactions

Freilich wants banks to freeze fraudulent accounts and block suspicious transactions more quickly, before stolen funds disappear beyond recovery. One way to achieve this is by factoring in the timing of transactions. For example, an unusually large transfer made in the middle of the night could be assigned a higher risk score than a routine payment during normal business hours.

Where the money is going also matters. A transfer to a trusted recipient is very different from a sudden, high-value international payment to an account in a country the customer has never transferred money to before.

Banks should also assess the size of a transaction against the customer's usual spending and payment patterns.

Slow banking: Should the waiting period be extended?

Freilich sees slow banking as a step in the right direction but questions whether a four-hour waiting period is sufficient in every situation. He is therefore urging the banking sector to consider extending that period in certain circumstances, for example when a transfer request is submitted during business hours.

Stronger protection for victims

People who fall victim to phishing should receive clear information about their rights and their chances of recovering stolen funds much sooner.

One key issue is the concept of 'gross negligence'. “We also need to ask ourselves when it is not just the customer who has been negligent, but the bank as well,” Freilich argues.

He points to concerns raised during the parliamentary hearing about banks processing transactions that clearly deviate from a customer's normal payment behaviour, despite the warning signs.

Cracking down on money mules

Criminals are increasingly using third-party bank accounts to move and conceal stolen funds. Banks and law enforcement agencies need to be able to identify suspicious account networks more quickly and effectively.

Greater accountability across the financial sector

Banks already have the technology to identify suspicious transaction patterns. Freilich believes they should make full use of these tools to protect their customers.

At the same time, he stresses that banks cannot bear sole responsibility for preventing phishing. Customers also have a role to play. In his view, a system that guarantees consumers complete protection under all circumstances could create moral hazard, encouraging people to become less careful with their personal and financial information.

Other players must also shoulder their share of responsibility. Freilich specifically points to social media platforms, where fraudulent advertisements featuring well-known public figures continue to circulate in an attempt to deceive unsuspecting users.

A coordinated approach to tackling phishing

Freilich believes that an effective, consistent and coordinated approach is essential. Any measures must also be aligned with the European regulatory framework to avoid a patchwork of different rules across EU member states.

Michael Freilich already took action against phishing and cyber fraud involving money mules in 2021. His parliamentary resolution was unanimously adopted by the Belgian Chamber of Representatives in February 2022.