"Second Hand": Russian Banks Introduce a New Layer of Protection Against Fraud
Starting September 1, 2025, the Bank of Russia is rolling out an innovative service nicknamed "Second Hand," designed to strengthen customer protection against financial fraud. The system allows a client to appoint a trusted person — such as a relative or close friend — who will receive alerts about suspicious transactions. This trusted contact cannot access the account or withdraw funds but can approve or reject a transaction within 12 hours. If no response is received, the transaction is automatically declined, though the request may be resubmitted. Enrollment is initiated only by the client, and opting out is possible at any time.
Building Trust in Banking Services
The service applies to all forms of transactions, including card payments, transfers via the Faster Payments System, and cash withdrawals. Customers can designate their trusted contact through the bank’s mobile app, call center, or physical branch. Importantly, the trusted person must also be a client of the bank and can configure which transactions require confirmation.
For citizens, the primary benefit is a stronger shield against fraud, particularly for vulnerable groups such as seniors and teenagers. For society as a whole, the system promises increased financial literacy and a higher level of trust in digital banking. This is especially relevant in light of rising schemes targeting young people through dropper fraud.
Banks and the IT sector, meanwhile, face the challenge of introducing new functionalities — such as real-time notifications, confirmation mechanisms, and user-friendly interfaces — while building a secure infrastructure for processing requests. Stability and reliability will demand further modernization of online banking systems.
Expanding Capabilities and Export Potential
Initially designed for the domestic market, "Second Hand" also carries international potential. If successfully implemented, it could inspire similar solutions in European and Asian financial systems, especially in regions with high levels of digitalization and fraud activity. Within Russia, the service could integrate with state digital identifiers, like the Gosuslugi portal, simplifying online enrollment.
The system could evolve further with advanced customization: multiple trusted contacts, transaction-specific parameters, spending limits, and alerts through various channels. Cooperation with regulators and financial institutions will be key to setting industry-wide standards for such trust-based security services.
Risks, however, remain. Trusted contacts themselves could become sources of fraud or make mistakes, and conflicts between clients and their chosen helpers are possible.
From Concept to Nationwide Service
The concept dates back to 2021, when the Central Bank first suggested assigning assistants to elderly clients as protection against fraud. Banks were encouraged to integrate "second hand" functionality into their platforms, covering not only money transfers but also credit applications, account closures, currency exchange, and investment services.
By 2024, the Central Bank of Russia supported new transfer rules for retirees. At that time, Governor Elvira Nabiullina highlighted in her parliamentary address that voluntary pilot programs had already proven effective. New legislation now requires systemically important banks to offer such services on a mandatory basis.
In August 2025, the official launch of "Second Hand" was announced. Banks acknowledge that some trusted persons may fail to respond in time, which could prevent clients from completing needed transactions. Thus, the rollout will demand significant technical upgrades.
Still, the journey from concept to deployment illustrates Russia’s ability to transform forward-looking ideas into practical tools for financial safety.
Toward Mass Adoption
The new service arrives at a critical time, offering an extra line of defense against fraud and cyber threats. It is particularly relevant for seniors, teenagers, and those less comfortable in the digital world. Its biggest advantage lies in remote accessibility: everything can be set up without visiting a branch.
Looking ahead, experts predict that by 2026–2027, "Second Hand" may become a mainstream tool across all customer categories. Banks are also expected to integrate AI models that automatically assess the “suspiciousness” of transactions, notify trusted contacts, and increase digital literacy requirements. Educational campaigns from both banks and the government will play a pivotal role.
In essence, Russia’s "Second Hand" project demonstrates not only technological innovation but also a social mission: protecting people while building long-term trust in digital finance.
