Mathieu Gitton’s Post

👀 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

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

ECB and EBA published yesterday a joint report confirming the effectiveness of strong customer authentication. https://lnkd.in/d8eGCjvh I believe the results do not come as a surprise for payment/fraud professionals, but the findings underline the critical role of stringent security measures and regulatory frameworks in mitigating payment fraud risks. ◾ Fraud Statistics: The total value of payment fraud hit €4.3 billion in 2022 and €2.0 billion in the first half of 2023. Card payments and credit transfers were the most affected. ◾ Strong Customer Authentication (SCA) Impact: The implementation of SCA requirements has proven highly effective, particularly in reducing card fraud. Transactions authenticated using SCA show significantly lower fraud rates compared to non-SCA transactions. ◾ Regional Differences: Fraud rates for card payments are ten times higher when the counterpart is outside the EEA, where SCA is not mandated. This highlights the importance of regulatory measures in combating fraud. ◾ Distribution of Fraud: The burden of fraud losses varies by payment instrument and country. Notably, 71% of card fraud and a significant portion of credit transfer and direct debit fraud involve cross-border transactions. As financial transactions continue to evolve, staying informed about these trends is essential for developing robust fraud prevention strategies. 

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

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

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

The European Banking Authority (EBA) published today an Opinion, in which it assesses payment fraud data. The document supports the new security provisions in the upcoming PSD3/PSR legislative framework, advocating for further measures like the mandatory IBAN/Name checks and enhanced fraud monitoring requirements. It emphasizes the need for a balanced approach that protects consumers while holding PSPs accountable for security lapses.   Emerging Types of Payment Fraud: - Instant Payments: High fraud rates compared to traditional credit transfers, partly due to the limited opportunity for PSPs to recover funds post-transaction due to rapid execution times. - Cross-Border Transactions: Significantly higher fraud rates than domestic transactions, attributed to inadequate cross-border cooperation and inconsistent application of SCA. - Authorized Push Payment Fraud: Increasing instances where payers are manipulated into authorizing payments to fraudsters, typically through social engineering techniques. Recommended Security Measures: - Enhanced Authentication: Strengthened procedures for transaction authentication and monitoring, including real-time transaction monitoring for instant payments. - IBAN/Name Checks: Expanded use, especially in cross-border transactions to verify the match between recipient names and account numbers. - Fraud Risk Management Frameworks: PSPs should establish comprehensive frameworks to assess and manage fraud risks actively. - Amended Liability Rules: Clearer definitions between authorized and unauthorized transactions to ensure payers are not unduly penalized for fraud, especially in social engineering cases. - Unified Supervision and Data Sharing: Improved cooperation and data sharing among PSPs across the EU to enhance detection and prevention capabilities. 📖 https://europa.eu/!WqKTVN

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

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

ECB and EBA Publish a Joint Report on Payment Fraud 📑 💳 The European Central Bank and the European Banking Authority (EBA) have recently published a joint report on payment fraud, providing valuable insights into the current landscape of payment fraud in the European Economic Area (EEA). This report is a significant step towards understanding and combating fraud in the financial sector. Let's examine its key findings and takeaways. Levels of payment fraud 📊 The report reveals that the total value of fraudulent transactions across main payment instruments in the EEA amounted to €4.3 billion in 2022 and €2.0 billion in the first half of 2023. 🎯 Total fraud value: €4.3 billion in 2022 and €2.0 billion in the first half of 2023. 🎯 Fraud rates: Card fraud with cards issued in the EEA accounted for 0.031% of the total value and 0.015% of the total card payments. Main fraud types 🚨 The report highlights that credit transfers and card payments accounted for the majority of payment fraud in terms of value and volume. This indicates that fraudsters target high-value transactions and exploit card payment system vulnerabilities. 🎯 Credit transfers: Highest fraud value. 🎯 Card payments: Highest fraud volume. 🎯 E-money transactions: Fraud rates of 0.022% in value and 0.012% in volume. The role of Strong Customer Authentication (SCA) 🔒 The report confirms the positive impact of strong customer authentication (#SCA) requirements introduced under the revised EU Payment Services Directive (#PSD2). SCA-authenticated transactions displayed lower fraud rates than non-SCA transactions, especially for card payments. This reinforces the importance of robust authentication measures in reducing fraud. 🎯 SCA impact: Lower fraud rates for SCA-authenticated transactions. 🎯 Cross-border transactions: Fraud rates for card payments were 10x higher when the counterpart was outside the EEA, where SCA is not legally required. Losses due to fraud 📉 The report also finds that losses stemming from payment #fraud were distributed differently among liability bearers, depending on the instrument or country. Most #cardfraud involves cross-border #transactions, highlighting the need for international cooperation in fraud prevention. 🎯 Cross-border fraud: In the first half of 2023, 71% of total card fraud value involved cross-border transactions. 🎯Liability distribution: Losses varied among liability bearers depending on the payment instrument and country. Read the full report here: https://lnkd.in/eY_KUFrz