In their annual payment fraud report, the European Banking Authority (EBA) and the European Central Bank (ECB) say that the total value of fraud increased to €4.2 billion in 2024 from €3.5 billion in 2023. The authors say that the introduction of SCA - requiring online transactions over a certain amount to face two-factor authentication checks - has proved effective against the fraud types it was designed to mitigate and that were dominant at the time PSD2 came into force, especially for card payments. However, while card transactions that were verified with SCA were generally less susceptible to fraud, for other payment types, such as credit transfers, this effect was less clear. Notably, card payment fraud was 17 times higher when the payment recipient was outside the EEA, where SCA is not legally required and often not used. Meanwhile, new types of fraud are emerging, often targeting transactions for which an SCA exemption is applied or manipulating legitimate users into authenticating fraudulent transactions. For 2024, the overall losses for credit transfers were €2.2 billion (a year-on-year increase of 16%), and for card payments with cards issued in the EU/EEA they were €1.3 billion (a year-on-year increase of 29%). For credit transfers, payment service users bore approximately 85% of total fraud losses in 2024, mainly as a result of scams that tricked users into initiating fraudulent transactions.
By on 2025-12-19 08:00:00
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