PERU Law and Practice Contributed by: Luis Ernesto Marín and Andrés Kuan-Veng, Rubio Leguía Normand
12. Fraud 12.1 Elements of Fraud
increase financial inclusion, and provide cus - tomers with more opportunities to learn about different financial products and choose the one that best suits their needs, promoting market competitiveness. Overall, while there is no specific regulation on Open Banking in Peru, there are ongoing discus - sions and initiatives towards its implementation. The feedback received from different institutions highlights the potential benefits of open bank - ing or open finance and the need for effective regulation to support its growth and adoption in the country. 11.2 Concerns Raised by Open Banking Some concerns raised by stakeholders in Peru regarding open banking include data privacy and security, as customers worry about the safety and privacy of their personal and finan - cial information when shared with third-party providers. Additionally, concerns over customer consent highlight the need for transparent con - sent mechanisms to prevent unintentional data sharing. Market concentration is another issue, with some stakeholders fearing that open bank - ing could reduce competition and negatively impact smaller financial institutions. Further - more, implementation challenges may arise due to the significant technological and regulatory changes required, which could be particularly difficult for smaller institutions and start-ups. Additional barriers involve the expansion of the technological environment and the need for improved financial literacy and digital culture among banking service users.
Fraud in the financial services and fintech sec - tors in Peru generally involves deception, mis - representation, or unlawful financial gain. 12.2 Areas of Regulatory Focus It is difficult to assess the full extent of regulatory efforts in fraud prevention, as there is no single authority overseeing fintech companies in Peru, except for those engaged in financial interme - diation or securities market activities. However, in recent months, there has been a noticeable rise in identity theft cases, particularly involving digital loans, where fraudulent actors use sto - len identities to obtain credit. These cases are typically reported to and handled by INDECO - PI, the national consumer protection authority. Additionally, there are increasing instances of friendly fraud, where consumers dispute legiti - mate transactions to obtain refunds, presenting challenges for fintech service providers in dis - tinguishing between genuine fraud and abusive chargebacks. 12.3 Responsibility for Losses A fintech service provider’s liability for customer losses depends on the nature of the fraud and applicable consumer protection laws.
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