Dorina Miron Cîrlig’s 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

Important Insights from the Latest EBA & ECB Payment Data Report. The joint report from the EBA and ECB highlights key findings on payment trends and fraud for H1 2022, H2 2022, and H1 2023. Here are the key takeaways: 🔍 Scope & Coverage: - Analysed data on credit transfers, direct debits, card payments, cash withdrawals, and e-money transactions across all EU/EEA countries. - Focused on total payment transactions and fraudulent transactions in value and volume. 💰 Fraud Analysis: - Total payment fraud in 2022: EUR 4.3 billion; H1 2023: EUR 2.0 billion. - Major fraud types: Credit transfers and card payments. - H1 2023: EUR 1.131 billion in fraudulent credit transfers; EUR 633 million in card fraud. 📊 Fraud Rates: - The highest fraud rates were observed in card payments (0.031% value, 0.015% volume) and e-money transactions (0.022% value, 0.012% volume). - Lower fraud rates in direct debits, cash withdrawals, and other instruments. 💳 Card Fraud Insights: - Predominantly remote transactions. - Main causes: Lost/stolen cards and card details theft. - SCA has a significant impact, especially within the EEA. 🌍 Geographical Insights: - Most transactions were domestic, but cross-border fraud was significant, especially outside the EEA. 🔐 Security Measures: - SCA shows a positive impact, with lower fraud rates for authenticated transactions. - Higher fraud rates observed for transactions using SCA exemptions. 📈 Liability & Loss Distribution: - Varies by payment instrument and country. - PSUs bore significant losses, especially in credit transfers and card payments. 📉 Outlook: - Stable fraud trends due to SCA and other industry measures. - Continuous monitoring by EBA and ECB to enhance payment security. #Payments #Fraud #FraudPrevention #Fintech #EBA #ECB #PSD2 #SCA #PaymentSecurity https://lnkd.in/dnrnDX2t

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**

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.

𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 (𝗘𝗕𝗔) 𝗽𝘂𝗯𝗹𝗶𝘀𝗵𝗲𝗱 𝗗𝗿𝗮𝗳𝘁 𝗢𝗽𝗶𝗻𝗶𝗼𝗻 𝗼𝗻 𝗻𝗲𝘄 𝘁𝘆𝗽𝗲𝘀 𝗼𝗳 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗳𝗿𝗮𝘂𝗱 𝗮𝗻𝗱 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝗺𝗶𝘁𝗶𝗴𝗮𝗻𝘁𝘀 🔍 The 'Opinion on new types of payment fraud and possible mitigants' discusses the following key points: 1. The European Banking Authority (EBA) has analyzed fraud data for the year 2022 and gained insights into fraud patterns, including new types of fraud such as those associated with instant payments, which have higher fraud rates than traditional credit transfers. 2. Despite the successful implementation of Strong Customer Authentication (SCA), fraudsters have adapted and developed more complex fraud techniques, particularly using social engineering methods. 3. The EBA has provided general comments on the observed fraud trends and suggests possible measures for the EU co-legislators and the Commission to consider. 4. The data and observations presented in the Opinion are based on fraud data collected by the EBA and the European Central Bank (ECB) for 2022, with the exception of data on mail order and telephone order (MOTO) transactions and instant payments, which are based on a separate 2023 survey conducted by the EBA through national competent authorities (NCAs) and national central banks with H1 2022 as the reference period. 5. The EBA has identified specific scenarios in which Payment Service Users (PSUs) or Payment Service Providers (PSPs) can be held liable for fraud, such as when a PSU has made a payment to a fraudster without reasonable grounds for believing in the legitimacy of the payee or when a PSU has disregarded warnings regarding a specific fraud type. 6. The EBA has noted high levels of fraud for certain payment instruments, geographic dimensions, jurisdictions, or combinations thereof, even after the implementation of SCA.    

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

EBA OPINION ON INSTANT PAYMENTS FRAUD Here is a detailed opinion by the European Banking Authority. A key point is “17. The first is instant credit transfers, also referred to as instant payments, for which the data reported by 18 NCAs for H1 2022, show that the fraud rates in value, besides presenting significant divergences between Member States (MS), are about 10 times higher on average than conventional Credit Transfers (CT).” Instant Payments have ten times the fraud of regular payments.

👀 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