A surge in fear among Russians regarding cashless transfers has emerged following the initiation of the first criminal case related to “dropping,” the practice of transferring bank accounts to fraudsters. People are now expressing a preference for cash transactions, fearing that their cards will be blocked or that they will be wrongly implicated in illegal activities.

The case involves a 52-year-old Moscow resident who was detained for allegedly opening an individual entrepreneur account at the direction of fraudsters, to which over a million rubles of stolen money were transferred. This marks the first application of the recently introduced “dropping” article in the Criminal Code. The new law carries penalties of up to 300,000 rubles or imprisonment for up to three years.

Lawyers predict a significant increase in “dropping” cases due to the previous lack of legal recourse. Banks have been blocking numerous “dropper” accounts, with the Central Bank reporting over 700,000 such accounts blocked last year. The new law aims to address the cashing out and fund withdrawal schemes facilitated by “droppers.”

However, the strict enforcement of the new law has led to unintended consequences. Many individuals are reporting instances of banks blocking legitimate transactions and holding funds for extended periods. Some banks are being accused of overzealous monitoring and treating clients unfairly by blocking harmless transactions.

Readers are sharing experiences of blocked transactions for everyday purchases, transfers to family members, and even loan disbursements. The increased scrutiny and blocking of accounts have instilled distrust in the banking system, leading people to revert to cash transactions to avoid suspicion. Despite efforts to promote digital financial services like the Faster Payments System (SBP), many are now wary of using them.