Here is the converted article in Markdown format:
EU Payments Regulation Faces New Threats and Fraud Trends
The European Payments Council (EPC) has released its latest report on payments threats and fraud trends in 2022, highlighting the need for continued vigilance and innovation in the face of evolving cybersecurity risks.
New Opportunities for Fraudsters
According to the report, the Payment Services Directive (PSD2) and related regulations, such as Commission Delegated Regulation (EU) 2018/189, have created new opportunities for fraudsters. The European Banking Authority’s Opinion on Strong Customer Authentication emphasized the need for dynamic linking and authentication methods to protect customers.
Rising Fraudulent Activities
Fraudulent activities, such as card-not-present (CNP) transactions and e-commerce scams, are on the rise. Criminals are exploiting vulnerabilities in online payment systems, using stolen credit card information and fake identities to make unauthorized purchases.
Mobile Payments Under Attack
The report notes that mobile payments have become a popular target for fraudsters, with near-field communication (NFC) and contactless protocols being exploited. The increasing use of mobile wallets, such as Apple Pay and Google Wallet, has created new opportunities for fraudulent transactions.
Recommendations to Combat Fraud
To combat these threats, the EPC recommends implementing robust authentication methods, including:
- Biometric authentication
- Behavioral analysis
The report also emphasizes the importance of secure communication protocols, such as Transport Layer Security (TLS), to protect sensitive data during transmission.
Continuous Monitoring and Incident Response Planning
In addition, the EPC highlights the need for continuous monitoring and incident response planning to detect and respond to fraud attempts in real-time. This includes:
- Collaborating with law enforcement agencies
- Sharing intelligence on fraudulent activities
Conclusion
The report concludes that while the payment industry has made significant progress in addressing cybersecurity risks, there is still much work to be done to stay ahead of emerging threats. By staying vigilant and innovative, the European payments sector can continue to protect customers and maintain trust in digital transactions.
Sources:
- European Payments Council, “Payments Threats and Fraud Trends Report 2022”
- Commission Delegated Regulation (EU) 2018/189
- European Banking Authority’s Opinion on Strong Customer Authentication