The European Banking Authority (EBA) on Tuesday, April 19 will close a public consultation launched in January to better understand certain trends of payment fraud in Europe, and to figure out the origins of some types of fraud by payment method.
The discussion paper released by the EBA in January analyzed payment fraud data provided by the national competent authorities (NCA) during 4 semesters, from H1 20219 to H2 2020, for credit card payments, credit transfers and cash withdrawals. While the data is reliable for most of the periods and payment methods, the EBA warned that as the NCA didn’t provide enough information for some segments, the report excluded data for certain countries and periods to avoid inconsistencies.
The responses provided by stakeholders will likely be used to understand the origins of certain types of fraud and to design better guidelines in the future. The EBA didn’t suggest that this data will also be used for the future amendment of the payment service directive 2 (PSD2) — which, according to the European Commission, could begin preparatory work in 2022 — but such use can’t be ruled out, since the data analyzed in the report is some of the data required by the PSD2.
The preliminary findings by the EBA are, in most cases, in line with what one could expect for payment transactions. For instance, the fraud rate for credit card transactions is higher (up to 42 times higher) than credit transfers. The data shows that card payments…
