BRUSSELS, Belgium: The European Union has reached a political agreement on a new package of regulations designed to strengthen consumer protection against rising online fraud and hidden payment risks, the European Parliament said.

Under the legislation, banks and other payment service providers will face stricter obligations to prevent fraud, including the requirement to freeze suspicious transactions. If providers fail to put in place adequate safeguards, they will be responsible for covering customers' financial losses.

Online platforms will also share accountability. Those who do not remove fraudulent advertisements could be held liable for the costs banks incur when reimbursing victims of related scams.

The rules aim to improve visibility of payment charges, expand access to cash in rural communities, and streamline communication between payment providers and banks. They also require banks to offer human customer support rather than relying exclusively on chatbots.

Before the new measures can take effect, they must be formally approved by both the European Parliament and EU member states.