Source: European Parliament
While security requirements introduced by the EU Payment Services Directive[1], such as strong customer authentication, have had a positive impact on reducing payment fraud, malicious behaviours are constantly evolving and increasingly relying on the manipulation of the payment service user.
Cases where users are manipulated by fraudsters into making a payment, or to disclose sensitive information which is used to commit fraud are becoming more widespread.
Where the user is manipulated into making a fraudulent credit transfer, often the user bears the losses as the transaction is deemed to have been authorised.
According to the latest European Banking Authority (EBA) risk assessment report[2], the greatest increase in the total value of losses due to fraud borne by users of credit transfers was observed in Bulgaria, Romania and Hungary, but the issue is not limited to Eastern Europe. Combatting payment fraud is a key priority for the Commission.
The Commission’s proposal on a Payment Services Regulation (PSR) published in June 2023[3] and currently in co-decision procedure, includes additional fraud prevention measures. It also proposes to introduce new redress rights for consumers, for example in case of bank employee impersonation fraud.
Data quality issues often stem from incomplete data submissions or methodological misclassifications by reporting agents. It is primarily the role of competent authorities at national level to follow-up on such issues where they occur.
To further enhance data quality, the PSR proposal mandates the EBA to develop technical standards on the reporting of payment fraud data.
This also aims to foster a more consistent application of the legal requirements and a more effective enforcement by competent authorities.
- [1] PSD2: OJ L 337, 23.12.2015, p. 35-127.
- [2] https://www.eba.europa.eu/sites/default/files/2024-11/f03ee0c1-7258-4391-8bf1-578924956049/EBA%20Risk%20Assessment%20Report%20-%20Autumn%202024.pdf, p. 101-102.
- [3] COM/2023/367 final: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023PC0367