Payment fraud in EEA touched €4.2bn in 2024, EBA-ECB report finds

Core Insights - Payment fraud in the European Economic Area (EEA) reached €4.2 billion ($4.9 billion) in 2024, an increase from €3.5 billion in 2023, highlighting the growing threat of fraud in the region [1][2] - The introduction of Strong Customer Authentication (SCA) in 2020 has contributed to a reduction in overall fraud levels, but new types of fraud are emerging that require continuous adaptation of security measures [2][5] - The report provides a detailed analysis of payment fraud, including breakdowns by payment method and country-specific data, emphasizing the need for ongoing vigilance [3][5] Payment Fraud Trends - The report indicates that credit transfers accounted for €2.2 billion in losses in 2024, marking a 16% year-on-year increase, while card payments with EU/EEA issued cards reached €1.329 billion, a 29% increase [6] - Transactions authenticated with SCA were found to be less susceptible to fraud, particularly in card payments, although the effect was less pronounced for credit transfers [4][5] - The distribution of fraud losses varied significantly by payment instrument and across different countries in the EEA [5] Future Monitoring and Policy Implications - The EBA and ECB will continue to monitor and publish payment fraud data to inform policy decisions and supervisory actions aimed at combating payment fraud [7]