The National Bank of Hungary has launched the first phase of the Central Fraud Detection System (CFDS), an artificial intelligence-based tool designed to identify fraudulent activity targeting bank transfers in fractions of a second. Developed and operated with GIRO Zrt., the central bank’s owned entity, the CFDS is presented as part of the governor’s “five strikes” package to curb financial cyberfraud. Under the relevant legislation, domestic banks must submit specified data on instant transfers to the CFDS from 1 July 2025, and are expected to incorporate the system’s transaction-level risk scores into their own fraud detection controls. The central bank indicated the CFDS will be continuously refined based on data and experience gathered. Beyond the CFDS rollout, the “five strikes” measures include closer supervisory expectations for banks’ fraud prevention backed by targeted audits, a planned legal amendment to require banks to cover losses where appropriate customer authentication was not applied, a proposal to extend bank liability to cases where customers are induced to pay following bank impersonation, and an information campaign for customers on fraud risks and prevention.
National Bank of Hungary 2025-07-01
National Bank of Hungary launches first phase of Central Fraud Detection System for instant transfer fraud detection
The National Bank of Hungary has launched the Central Fraud Detection System (CFDS), an AI tool to detect fraudulent bank transfers, as part of the governor’s “five strikes” package against financial cyberfraud. From 1 July 2025, domestic banks must submit instant transfer data to the CFDS and integrate its risk scores into their fraud controls. The package also includes enhanced supervisory expectations, potential legal amendments for bank liability, and a customer information campaign on fraud prevention.