CREOBIS - CREO Business Information & Seminars’ Post

The European Banking Authority (EBA) and the European Central Bank (ECB) published a joint Report on payment fraud data. The report assesses payment fraud reported by the industry across the EEA, which amounted to €4.3bn in 2022 and €2.0bn in the first half of 2023. The Report confirms the beneficial impact of #SCA on fraud levels. The Report examines the total number of payment transactions and the subset of fraudulent transactions in terms of value and volume. In addition to the aggregated values, the Report also presents data based on volumes and also sorted by type of payment instruments, i.e. credit transfers, direct debits, card payments, cash withdrawals, and e-money transactions. The total value of fraudulent credit transfers, direct debits, card payments, cash withdrawals and e-money transactions in the EEA amounted to €4.3 billion in 2022 and €2.0 billion in the first half of 2023. #SCA-authenticated transactions featured lower fraud rates than non-SCA transactions, especially for card payments, both in terms of values and volumes. Furthermore, fraud shares for card payments, both in terms of values and volumes, were 10 times higher when the counterpart is located outside the EEA, where the application of SCA is not legally required and may therefore not have been requested. Hence, the report confirms the beneficial impact of the #SCA requirements that were introduced by the PSD2 and the supporting technical standards that the EBA had issued in 2018 in close cooperation with the ECB. https://lnkd.in/d_5WccwZ

SCA's Impact on Reducing Payment Fraud Today, the European Central Bank (ECB) and the European Banking Authority (EBA) published a joint Report on Payment Fraud revealing some important insights: 💰 The total value of payment fraud across the EEA was €4.3 billion in 2022 and €2.0 billion in the first half of 2023. Most fraud involved credit transfers and card payments. 🔒 Strong Customer Authentication (SCA) requirements have been highly effective. Fraud rates for SCA-authenticated transactions are significantly lower, especially for card payments. In fact, card fraud rates are ten times higher for transactions outside the EEA where SCA isn’t mandatory. 🌍 Most card fraud (71% of total value in the first half of 2023), along with a large share of credit transfer and direct debit fraud (43% and 47% respectively) involved cross-border transactions. SCA is proving that strong regulations can make a big difference in protecting our financial transactions. A big thank you to the ECB and EBA for their continued efforts and insights in making our payment systems safer and more secure. The full report can be found here

Some nuggets from the recent EBA & ECB report on payment fraud across Europe: 🔐 SCA has been a force for good and is effective at preventing fraud 💳 card payments have by far the highest fraud rates both in value and volume: 📈 0.031% in H1 2023, increasing from 0.026% in H1 2022 or 7.31 million fraudulent transactions out of a total of 48.77 bn total card payments 📱 credit transfer fraud rate by comparison is significantly lower at 0.003% (or 616k fraudulent transfers out of total of 21.81 bn) 💰 credit transfers are often used for high-value payments (AOV €6485), which means that the average value of of a fraudulent credit transfer is higher for credit transfers vs other types of payments, but still significantly lower than the AOV, at €1835 #payments #fraud #cardpayments #report #openbanking https://lnkd.in/dwFMUKUe

📢 **Joint Report on Payment Fraud: ECB and EBA** 📅 **Date:** 01/08/2024 💶 **Fraud in 2022:** €4.3 billion 💶 **Fraud in H1 2023:** €2.0 billion 🔒 **Strong Customer Authentication (SCA) effective against fraud!** The joint report by the European Central Bank (ECB) and the European Banking Authority (EBA) highlights the fraud data reported by payment service providers in the European Economic Area (EEA). 🔹 **Most Affected Payment Instruments:** - **Bank transfers** - **Card payments** (majority in volume) 🔹 **Fraud Rates in H1 2023:** - **Card payments:** 0.031% of total value, 0.015% in volume - **Electronic money transactions:** 0.022% in value, 0.012% in volume - **Bank transfers:** 0.001% in value, 0.003% in volume 🔹 **Impact of SCA:** - Transactions authenticated by SCA show lower fraud rates, especially for card payments. - Fraud rates are ten times higher for transactions outside the EEA. 🔹 **Distribution of Fraud Losses (H1 2023):** - **Card payments:** 71% of losses involve cross-border transactions. - **Bank transfers:** 43% of losses. - **Direct debits:** 47% of losses. 🔹 **SCA Exemptions and Impact on Fraud:** Certain exemptions (e.g., low value, trusted beneficiaries) show higher fraud rates than others (e.g., secure corporate processes). 🔹 **Distribution of Responsibility for Losses:** - **Users of payment services:** 45% of losses for card payments, 51% for cash withdrawals, over 80% for bank transfers. The report emphasizes the importance of remaining vigilant against fraud and the crucial role of strong authentication. The widespread adoption of RTS standards for SCA has had a positive effect on reducing fraudulent payments. 📍 **Full Source:** [ECB Press Release](https://lnkd.in/eXzf8XfM) 📊 **#Fraud #PaymentSecurity #ECB #EBA #SCA #PSD2 #CyberSecurity**

👀 Another report packed with significant figures. The European Banking Authority (EBA) and European Central Bank have recently released a joint report titled "2024 Report on Payment Fraud." This newly released report offers a thorough assessment of the most recent payment data under the revised Payment Services Directive (PSD2). Covering data from H1 2022, H2 2022, and H1 2023, the report provides in-depth insights into credit transfers, direct debits, card payments, cash withdrawals, and e-money transactions across the EU/EEA. Some key figures include the total value of payment fraud across the European Economic Area (EEA), which reached €4.3 billion in 2022 and €2.0 billion in just the first half of 2023. In H1 2023 alone, fraudulent credit transfers within the EU/EEA amounted to €1.131 billion, while card fraud totalled €633 million. In terms of volume, 7.31 million card transactions were fraudulent in H1 2023. Card payments had the highest fraud rates relative to other payment instruments, with fraud accounting for 0.031% of the total value and 0.015% of the total volume of card transactions in H1 2023. E-money transactions also showed notable fraud rates, with 0.022% of the total transaction value and 0.012% of the total number of transactions being fraudulent. Direct debits had a lower fraud rate, with 0.014% of the total volume of transactions affected. Notably, 71% of card payment fraud by value and a significant share of credit transfer fraud were linked to cross-border transactions. Additionally, 28% of fraudulent card payments were associated with transactions outside the EEA. Strong customer authentication (SCA) proved crucial in mitigating risks, particularly within the EEA, where fraud rates for card payments were ten times higher when the counterpart was located outside the EEA. Don’t miss out on these important findings—download the full report! Source: https://lnkd.in/eyVQWg5Z

The ECB and EBA report reveals EUR 4.3 billion in fraud payments The European Central Bank (ECB) and the European Banking Authority (EBA) have published a collaborative report on payment fraud data. This report evaluates payment fraud data that payment service providers in the European Economic Area (EEA) submit semi-annually for various payment methods like credit transfers and card payments. The total value of fraud activities in 2022 and 2023 The document reported that fraudulent activities in credit transfers, direct debits, card payments, cash withdrawals, and e-money transactions in the EEA amounted to EUR 4.3 billion in 2022. By the first half of 2023, this figure had decreased to EUR 2 billion. In both value and volume, most payment fraud was associated with credit transfers and card payments. Specifically, card payments constituted the highest volume of fraud. In the first half of 2023, card fraud involving EEA-issued cards represented 0.031% of the total value and 0.015% of the total number of card transactions. Similarly, e-money transactions showed comparable fraud rates at 0.022% in value and 0.012% in volume. Conversely, fraud rates were significantly lower for other methods, notably credit transfers, with rates at 0.001% in value and 0.003% in volume. Customer authentication requirements benefits The report validates the beneficial effects of the strong customer authentication (SCA) regulations implemented as part of the revised EU Payment Services Directive (PSD2) and the accompanying technical standards established by the EBA in 2018 in collaboration with the ECB. Transactions authenticated through SCA showed reduced fraud rates compared to non-SCA transactions, notably in card payments. Additionally, fraud rates in card payments were significantly higher when the other party was situated outside the EEA, where SCA compliance is not mandatory. Furthermore, the document shows that losses from payment fraud were not evenly distributed among those responsible and varied depending on the payment method or country. A large portion of card fraud (71% of the total value in the first half of 2023), as well as a substantial portion of credit transfer and direct debit fraud (43% and 47% respectively), were associated with cross-border transactions. Consult the complete News on: https://lnkd.in/dGsB46HZ https://lnkd.in/dbdJ5BWQ

ECB and EBA joint report on Payment Fraud    The European Central Bank (ECB) and European Banking Authority (EBA) have released a joint report providing insights into the state of payment fraud in Europe. This report is essential for policymakers, regulators, and financial institutions as they navigate the evolving fraud landscape. Here’s a snapshot of the key takeaways:   🔍 Persistent Fraud Challenges in Europe:  Despite ongoing efforts, payment fraud remains a significant challenge in Europe. The total value of fraudulent transactions reached €2.0 billion in the first half of 2023, following €4.3 billion in 2022, highlighting the need for continued vigilance.   💳Varying Fraud Rates Across Payment Methods:  ▶ Card Fraud accounts for 0.031% of transaction value and 0.015% of transaction volume. ▶ Credit Transfers suffer from much lower fraud rates (0.001% in value and 0.003% in volume). ▶ Direct Debits have a relatively low fraud rate, but a substantial portion of direct debit fraud involves cross-border transactions.   🔒Effectiveness of Strong Customer Authentication (SCA):  SCA has successfully reduced fraud rates within the European Economic Area (EEA). However, countries with higher cross-border transactions, especially outside the EEA, are more vulnerable due to varying SCA requirements.   🤝 Importance of Collaboration:  The report emphasizes the critical role of collaboration among financial institutions in combating payment fraud. By sharing intelligence, best practices, and working together to enhance fraud prevention measures, the industry can better protect consumers and maintain trust in the digital payments ecosystem.   Explore the full report for more detailed insights here: https://lnkd.in/eY_KUFrz   💬 What are your thoughts on these findings? How do you see these trends impacting the future of payment security?   #ECBEBAfraudreport #Europepaymentfraud #SCAresults

A key takeaway from the joint payment fraud report by the European Central Bank (ECB) and the European Banking Authority (EBA) is that the implementation of Strong Customer Authentication (SCA) under PSD2 has led to a reduction in fraud rates within the European Economic Area (EEA), compared to non-EEA regions where this requirement is not enforced. Looking forward, the implementation of Verification of Payee (VoP) in the near future is expected to further enhance security and reduce fraud risks even more effectively.

Strong Customer Authentication (SCA) Reduces Payment Fraud Across Europe 🚀 The European Central Bank (ECB) and the European Banking Authority (EBA) have published a joint report revealing the positive impact of strong customer authentication (SCA) on reducing payment fraud in the European Economic Area (EEA). 📊 The report analyzed payment fraud data from various methods, including credit transfers and card payments. In 2022, the EEA saw fraudulent transactions totaling €4.3bn, with €2.0bn reported in the first half of 2023. Credit transfers and card payments were the most affected, with fraudulent credit transfers amounting to €1.13bn in H1 2023, a 14% decrease from H1 2022. 💳 Card fraud involving EU/EEA-issued cards totaled €633m in H1 2023. However, the total fraudulent card payments processed were higher at €826m. Fraudulent direct debits, cash withdrawals, and e-money transactions were significantly lower, each below €100m. 🔒 The implementation of SCA requirements, as mandated by the revised EU Payment Services Directive (PSD2), has shown significant benefits. Transactions authenticated through SCA had much lower fraud rates compared to non-SCA transactions, especially for card payments. Notably, card payment fraud rates were 10 times higher for transactions involving parties outside the EEA, where SCA is not a legal requirement. 🌍 Cross-border transactions accounted for a significant portion of fraud, with 71% of card fraud value and substantial shares in credit transfers and direct debits. This highlights the need for continued vigilance and enhanced security measures in international transactions. This report underscores the importance of regulatory measures like SCA in combating payment fraud and protecting consumers across Europe. #PaymentSecurity #SCA #PSD2 #FraudPrevention #FinancialRegulation #DigitalPayments #Fintech #BankingInnovation #ECB #EBA #OpenBanking https://lnkd.in/dtQ9JiAY

As snotty as I can be in my commentary sometimes, I try to keep an open mind when reading any new fraud report. If I'm going to say something crummy, I at least want the report to have a fair shake. Reading this Opinion on payment fraud (https://lnkd.in/gttFSua3) from the European Banking Authority (EBA) was a tough one for me though. Not because it's bad, but because it was worded in a way that just riled me. "Oh really? YOU figured out that instant payments present a higher risk of fraud? YOU figured out the same thing about cross-border payments? Thank goodness for YOU." I did calm down eventually, and the report is fine. This was a me problem, not a report problem. The report basically summarizes what has been covered over the last couple of years around payment fraud. I don't think anything in the report will blow anyone's mind, and some things just don't make sense (transaction monitoring or authentication don't help when social engineering has occurred and the true consumer chooses to make a bad payment), but it's still helpful to have a concise summary of all the findings and opinions. EBA publishes Opinion on new types of payment fraud and possible mitigations (https://lnkd.in/gWwvdBve) #fraud #fraudreport #fraudmanagement #fraudprevention #payments #paymentfraud #banking #banks #instantpayments #appfraud