Central bank deploys artificial intelligence to curb financial cyberfraud

Budapest, 1 July 2025 – The first phase of operation of the Central Fraud Detection System (CFDS), which uses state-of-the-art technology to detect fraudulent activities targeting bank transfers in a fraction of a second, has been launched. Representing a unique development at the international level, this system is part of the Magyar Nemzeti Bank's "five strikes" series of measures announced by MNB Governor Mihály Varga at the beginning of June.

For the Magyar Nemzeti Bank, the security of and confidence in domestic electronic payments is of paramount importance, including the fight against cyberfraud. The CFDS system, launched at dawn today by the MNB and GIRO Zrt., which is owned by the MNB, employs artificial intelligence to assess the risks of fraud associated with each transaction. Pursuant to the relevant legislation, starting from 1 July 2025, domestic banks are required to submit specific data on instant transfers to the CFDS. Banks are expected to incorporate the risk scores from the CFDS into their own fraud detection systems. As a result of this development, the domestic banking system will be able to more effectively detect fraud attempts that put consumers' money at risk. In the future, the system will be continuously improved to maximise its effectiveness, based on the data and experience gathered.

In early June, Governor Mihály Varga announced the MNB's "five strikes" – a series of measures intended to curb financial cyberfraud. The MNB expects the banks to be much more active than in the past in preventing fraud, which it will monitor through targeted audits. The central bank is also initiating a legal amendment to ensure that, in line with international practice, banks cover the damages in all cases where they have failed to apply appropriate customer authentication. Moreover, the MNB is proposing to extend the liability of banks to cases where the customer is persuaded to initiate payment by bank impersonation. In addition, the MNB is launching an information campaign for bank customers on the risks of fraud and how to prevent them.

Magyar Nemzeti Bank