The recovery of this amount was possible thanks to the Special Refund Mechanism (MED), which facilitates the refund of amounts in cases of scams or failures in Pix.
O The Central Bank recently announced that it managed to return R$1,1 billion to Brazilians who suffered from fraud or failures in the Pix instant payment system. This amount was recovered through the Special Return Mechanism (MED), a tool that aims to help victims recover money lost through fraudulent transactions or operational errors.
According to data released by the Central Bank, most of this amount, R$952,3 million, was recovered in cases of fraud, while another R$167,6 million refers to operational failures. Although these numbers are expressive, the recovery process still has its challenges, with only 8,2% of the requested amounts being returned to users.
How does the Central Bank's Pix Refund Mechanism work?
O The Central Bank created MED especially for Pix, and it works as a kind of extra security for those who have been victims of scams or failures. The process is simple, but requires attention. When a person realizes that they have been the victim of fraud or error, they have up to 80 days to file a refund request with the bank. From that moment on, the financial institution analyzes the case and, if it understands that the complaint is valid, the funds are blocked in the recipient's account.
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After the case is blocked, an investigation can take up to seven days. If fraud is confirmed, the money is returned to the victim within 96 hours. If the complaint is not valid, the funds are released back to the recipient. For situations where there was an operational failure in the Pix system, such as a duplicate transaction, the refund is faster and can happen in up to 24 hours, depending on the bank's assessment.
Challenges in returning amounts to the Central Bank
Although the Although the Central Bank has created an efficient system to deal with Pix fraud, the process faces some obstacles. One of the biggest problems is the lack of funds in the scammer's account when the bank tries to refund the money. Criminals often transfer the money to other accounts quickly, leaving victims with no chance of getting their money back. Lawyer Mariana Prado Lisboa, a specialist in fintechs and payment methods, explains: “When the institution tries to block the money, the balance has already been transferred to another account.”
Refund Mechanism Fraud: A New Scam
Unfortunately, the Pix refund system itself has also been targeted by criminals. A recent scam involves sending a Pix “by mistake”, where the scammer contacts the victim asking them to return the amount to another account. The victim, believing in the good faith of the situation, returns the money, but the criminal uses the Pix mechanism to suspend the transfer and keep double the amount.
O Central Bank warns that if you receive an unexpected amount via Pix, the refund must always be made using the specific functionality of your own bank, without transferring to other accounts. The return option usually appears in the transaction details and may be described as “return Pix“, “make a refund” or just “return”, depending on the financial institution.
The Central Bank's effort to return R$1,1 billion to Brazilians who were victims of fraud or failures in the Pix is an important step forward, but there are still challenges to be overcome. The Special Return Mechanism has been a crucial tool, but users need to be aware of both scams and the conditions for getting their money back. Keeping an eye out for new scams and always using the correct banking system tools are essential steps to protecting your money.
Creation of the Central Bank
With the growth of the economy and the complexity of the financial system, there was a need for an independent institution that could centralize the functions of currency control and economic policy. Thus, in 1964, with the reform of the national financial system, the Central Bank of Brazil was founded, separating the functions of the Banco do Brasil and creating an autonomous monetary authority.
The Central Bank was created with the objective of regulating the amount of currency in circulation, controlling inflation, guaranteeing the stability of the financial system, supervising the banking system and managing the country's international reserves.
Over the years, the Central Bank has undergone several changes, mainly with regard to its autonomy. In 2021, the law that granted formal autonomy to the Central Bank was sanctioned, ensuring that it had greater freedom to make monetary policy decisions without political interference.. As a result, the president of the Central Bank now has a fixed term of office, which does not coincide with that of the President of the Republic, ensuring greater stability in the conduct of economic policy.
Currently, The Central Bank of Brazil continues to play a crucial role in the country's economy. It is responsible for keeping inflation under control through the inflation targeting policy, one of the main economic tools adopted since the 1990s. The BCB plays an important role in the modernization of the financial system, being responsible for implementing the Pix instant payment system and other innovations in the banking sector.
Given the Central Bank's efforts to return R$1,1 billion to victims of Pix fraud, how do you think this initiative could impact Brazilians' trust in the instant payment system?