New Report Highlights Urgent Actions Needed to Combat Retail Payment Fraud

The European Credit Sector Associations, including the European Association of Cooperative Banks (EACB), the European Banking Federation (EBF), and the European Savings and Retail Banking Group (ESBG), have expressed strong support for the Euro Retail Payments Board’s (ERPB) latest Working Group Report on retail payment fraud. This comprehensive report addresses the growing threat of fraud and outlines crucial strategies to enhance prevention and mitigation efforts across Europe.

A Collaborative Effort Against Fraud

The ERPB’s Working Group Report results from extensive collaboration among key stakeholders, including consumer groups, payment providers, central banks, and European authorities. Sanne van der Neut, co-Chair of the working group for the EACB, highlights its importance, stating, “This report comes at a crucial time as fraudsters become more inventive and the fraud chain more complex. Tackling this requires a multistakeholder approach beyond the payment sector.”

Four Game-Changing Actions

The report identifies four “gamechanger” actions essential for improving fraud prevention and mitigation:

1. Cross-Sectoral Collaboration: Enhancing cooperation across industries and shared responsibilities is crucial. Fraud is not confined to the payment sector, and a unified approach is needed to tackle it effectively.

2. Sharing Fraud Insights and Data: Open exchange of information regarding fraud can lead to more effective countermeasures and quicker responses.

3. Supervisory Enforcement and Cooperation: Strengthening supervisory roles and cross-sector cooperation at the EU level will help ensure comprehensive fraud management.

4. Consumer Protection in Product Design: Prioritizing consumer safety in the design of payment products will help reduce vulnerability to fraud.

Actionable Recommendations

Each gamechanger includes specific recommendations for EU and national authorities, as well as the private sector. Consequently, these suggestions are crucial for the European Parliament and the Council’s discussions on the Regulation on Payment Services in the Internal Market (PSR). Moreover, the report highlights that digital fraud extends beyond payment points; therefore, it requires comprehensive regulation to address its broader impact.

Best Practices for Combatting Fraud

The report also includes a set of best practices for both public and private entities to follow in their fight against fraud. Launched in May 2023, this initiative was driven by the surge in fraudulent activities linked to digitalization and social engineering. The ERPB Working Group’s findings underline the need for all stakeholders involved in the fraud chain to work together more effectively to prevent and address these threats.