EBA and ECB Release Report on Payment Fraud

The report shows that while strong customer authentication (SCA) remains effective, fraudsters are quickly adapting their tactics. 

➡️ Fraud rates stable, losses rising: Payment fraud remained around 0.002% of transaction value across the EEA, but total losses rose to €4.2bn in 2024, up from €3.5bn in 2023; 

➡️ SCA remains strong: Strong customer authentication continues to significantly reduce fraud, with card payments far less vulnerable when SCA is applied; 

➡️ Cross-border risk persists: Card payment fraud was 17x higher when recipients were outside the European Economic Area (EEA), where SCA is often not required or used; 

➡️ New fraud typologies emerging: Manipulation of payers and scam-driven credit transfers are increasing, particularly where SCA exemptions apply or users are tricked into authorising transactions; and 

➡️ Consumers bearing losses: For credit transfers, users absorbed around 85% of fraud losses in 2024, largely driven by authorised scam payments. 

✅ Firms should remain alert to evolving fraud scams, review the use of SCA exemptions, and strengthen scam-prevention and customer protection controls. 

💡 Plenitude’s Fraud Prevention Services conduct independent assessments of existing strategies, rules, technology and operational processes to improve fraud detection rates, enhance the customer experience and reduce fraud losses. Visit our website for more information: https://www.plenitudeconsulting.com/services/fraud-prevention-services