Banks could be given extra time to investigate suspicious payments under an effort to curb fraud.
The Treasury said proposed new laws would enable banks to pause transactions for up to 72 hours where there are reasonable grounds to suspect a payment is fraudulent.
Currently, banks must either process or refuse a payment by the end of the next business day.
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The move, which has the support of the banking industry's trade body, follows a row over the maximum amount a bank or payment firm must refund victims of so-called authorised push payment fraud - the most common type.
That is when individuals or businesses are tricked into sending money to a fraudster's account.
Banks successfully lobbied for a lower limit, which was eventually set at £85,000 per claim. It comes into force on Monday 7 October.
The government said the proposed additional powers to delay payments would better help banks slash the estimated £460m lost to fraud in the last year.
It accounts for over a third of all reported crime in England and Wales and also includes losses from purchase and romance scams.
Under the planned rules, if a bank finds evidence to suggest a payment is fraudulent, it would need to inform the customer about a delay, and explain what they need to do in order to unblock it.
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Banks would also have to compensate customers for any interest or late payment fees they could incur as a result of delays.
Economic Secretary to the Treasury, Tulip Siddiq, said: "Hundreds of millions of pounds are lost to scammers each year, targeting vulnerable communities and ruining the lives of ordinary people.
"We need to protect these people better, which is why we are giving banks more time to investigate suspicious payments and break the criminal spell that scammers weave," she added.
Ben Donaldson, managing director of economic crime at trade body UK Finance, said the additional time would allow payment service providers to contact customers at risk.
"This could potentially limit the psychological harms that these awful crimes can cause and stop money getting into the hands of criminals," he said.
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