The European Credit Sector Associations, composed of the European Association of Cooperative Banks (EACB), the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG) have welcomed the publication by the Euro Retail Payments Board (ERPB) of its Working Group Report on fraud related to retail payments.
On top of the three Associations, other key stakeholders from the private and public sector have actively contributed to the Report. It identifies four “gamechanger” actions that are necessary to strengthen the fraud prevention and mitigation across Europe, as well as a set of best practices identified to combat fraud.
Sanne van der Neut, co-Chair of the working group on behalf of the EACB, representing the supply side, said: “This report comes at an important point in time. Fraudsters are getting increasingly inventive and the fraud chain is becoming more complex. Fighting this needs a multistakeholder approach and one that goes beyond the payment sector.”
The report is the outcome of a collaborative effort that brings together the perspectives and unique insights from a wide range of parties affected by fraud, including representatives from consumer and merchant organisations, bank and non-bank payment service providers, central banks, the European Banking Authority, the European Commission, the European Data Protection Board, and Europol.
The four “gamechangers” identified for a more effective prevention and mitigation of fraud are:
1) Effective cross-sectoral collaboration beyond the payment industry and shared responsibilities;
2) The sharing of fraud insights and data;
3) A supervisory enforcement and cooperation at EU level across sectors beyond the payment industry;
4) Ensuring that product design prioritises consumer protection.
For each gamechanger, several actions are recommended that EU, national authorities, and the private sector can implement. It is especially noted that these recommendations can be particularly relevant to the work of the European Parliament and the Council, in the context of the ongoing negotiations on the proposal for a Regulation on payment services in the internal market (PSR) and beyond. The conclusions of this cross sectoral collaboration highlight that digital fraud and scams relate to a far broader and more complex matrix than the point of payment alone and should be regulated in a sufficiently comprehensive way outside the auspices of payments regulation.
The paper also includes a list of best practices, intended to serve as a collection of measures that public and private actors can draw upon when combating fraud.
The ERPB Working Group, launched in May 2023, was prompted by the rise of fraudulent activities accelerated by digitalization and social engineering. This initiative underscores the need for all actors in the fraud chain to collaborate more efficiently in preventing and combating fraud.
