European Banking Authority Proposes Fraud Reporting Guidance, Seeks Industry Comment

Under the wide-ranging overhaul to the European Payment Services Directive, one of the objectives is to address fraud, both in the physical and the online worlds. Late last week, the European Banking Authority (EBA) proposed guidance for PSPs in the EU outlining possible requirements for fraud reporting under the new regulatory regime. According to the EBA, the data available to industry stakeholders in Europe makes it difficult to get an accurate idea of what businesses are facing from a fraud perspective—a common lament in other parts of the world, as well.

The overarching regulation requires PSPs that operate in the EU to provide “statistical data on fraud relating to different means of payment to their competent authorities.” The proposal defines the kinds of transactions that must be reported, how often and to what authority. It requires firms to identify where in the payment chain the fraud took place, what authentication method was used that failed to prevent the fraud, what kind of fraud it was and, importantly for the card-not-present world, in what channel the transaction took place.

The EBA is accepting comments on the proposed guidelines from interested stakeholders between now and Nov. 3, 2017. Please visit the organization’s Website and comment using the consultation form.

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