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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

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

📢 **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**

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 have released recently this fantastic report showing the state of Fraud trends across the European Union. Some of the main takeaways: 💰 Payment fraud in the EEA amounted to EUR 4.3 billion in 2022 and EUR 2.0 billion in H1 2023. 💳 Credit transfers and card payments are the main sources of fraud, with EUR 1.131 billion and EUR 633 million respectively in H1 2023. 💸 Card fraud predominantly occurs in card non present transactions, accounting for 82% of the value in H1 2023. 👮🏽♂️ Strong Customer Authentication (SCA) is applied to the majority of electronic payments, reducing fraud rates. 🌍 Fraud rates for card payments are significantly higher when the counterpart is outside the EEA. ✈ Cross-border transactions account for a significant share of fraud, with 71% of card fraud value being cross-border. 👨🏽💻 Manipulation of the payer is a significant cause of fraudulent credit transfers, accounting for 57% of the total value in H1 2023. Link to full report in comments. *manipulation of the payer refers specifically to the act where the payer initiates a fraudulent transaction. This coercion, which involves the payer being influenced to act against their own interests, is often a step in the fraud process, typically resulting in the fraudster initiating the payment at a subsequent stage.

👀 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

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.

The European Banking Authority (EBA) and the European Central Bank (ECB) have jointly published the 2024 Report on Payment Fraud, providing a critical analysis of data from the European Economic Area (EEA). The report offers a comprehensive overview of fraud levels across credit transfers, card payments, direct debits, cash withdrawals, and e-money transactions. It also details the role of Strong Customer Authentication (SCA) in mitigating fraud risks, underscoring the importance of this security measure for payment service providers (PSPs) and users alike. Below are the key findings, particularly focusing on the evolving landscape of payment fraud and the vital role of SCA in ensuring secure transactions https://lnkd.in/d7M4uwFX

BPFI were delighted to be joined by a delegation of members from Bank of Ireland AIB PTSB for a series of important meetings with the European Commission, EU Member State Officials and MEPs on the EU’s new Payment Services Regulation. Tackling the growing trend of payment fraud is critical to protecting consumers and ensuring continued confidence in the payments system. To effectively combat fraud, it is crucial to address the source and prevent frauds from reaching consumers in the first place. We believe that European policymakers should look at further ways to boost fraud prevention, while strengthening the protections around automatic refunds to avoid risks of moral hazard. Some of the measures that we believe could help overcome the challenges are: Include a requirement on all electronic communication providers to verify with national competent authorities that ads promoting financial services companies or products are authorized. Require telecom operators to prevent scam text messages or calls by implementing advanced security technologies and protocols, similar to certain Member State requirements. Ensure that the definition of authorisation leads to legal certainty, irrevocability, and predictability for payment transactions. Nicola Sadlier, from Bank of Ireland continued these discussions at the European Banking Federation event on “Unmasking the Payment Fraud Ecosystem: Best Practices & Collaboration”. A big thank you to all who engaged with us and we look forward to continuing working together to combat fraud. Read our full paper on https://lnkd.in/eTiz3Cbs