The European Banking Authority (EBA) and the European Central Bank (ECB) have recently issued a joint report on payment fraud across the European Economic Area (EEA).

In summary, despite an increase in total losses, overall fraud rates have stayed relatively steady. The 2025 report found that payment fraud made up approximately 0.002% of the total value of transactions in 2024, which is consistent with figures from previous years.

A compilation of data from various payment service providers reveals that fraudulent transaction values increased to EUR 4.2 billion in 2024, an uptick from EUR 3.5 billion in 2023 and EUR 3.4 billion in 2022. These statistics encompass a variety of payment methods including credit transfers, card payments, cash withdrawals, direct debits, and electronic money transactions.

Impact of Strong Authentication and Evolving Fraud Patterns

EBA and ECB officials highlight that strong customer authentication (SCA) – required by the revised Payment Services Directive (PSD2) since 2020 – continues to effectively limit fraud in areas it was intended to protect, such as card payments. Transactions verified with SCA showed a lower susceptibility to fraudulent activities.

On the other hand, card transactions without SCA, particularly those involving recipients outside the EEA, experienced significantly higher fraud rates due to the absence of similar legal protections in certain jurisdictions.

The report also notes that modern fraud tactics are adapting, with criminals increasingly employing strategies to trick users into authorizing fraudulent transactions or exploiting exceptions from SCA. This has diminished some of the protective benefits of authentication for specific types of payments, such as credit transfers where the deterrent impact of SCA was less evident.

Fraud losses varied by payment instrument and geographic region. Credit transfer fraud surged to EUR 2.2 billion in 2024, a rise of 16% compared to the previous year. Fraud involving EU- or EEA-issued cards increased by 29% to EUR 1.329 billion. In credit transfers, users bore approximately 85% of the losses due to scams that prompted legitimate payments.