2025 EBA-ECB Payment Fraud Report: Key Insights and Takeaways for Fintechs and PSPs

Why It Matters

Fintechs and PSPs face higher loss exposure and regulatory pressure, making robust, real‑time fraud controls essential for profitability and compliance.

Key Takeaways

• Fraud losses hit €4.2 bn, up 17% YoY.
• Remote payments account for majority of fraud value.
• APP scams cause over half of credit‑transfer fraud.
• SCA cuts unauthorized fraud but exemptions fuel attacks.
• Instant‑payment fraud grew 175% despite lower average loss.

Pulse Analysis

Europe’s payment ecosystem is at a crossroads as fraud losses climb to unprecedented levels. While the overall fraud‑rate remains low, the absolute €4.2 billion hit underscores the profitability of remote scams, especially authorized push‑payment (APP) schemes that manipulate users into approving transfers. Credit‑transfer fraud now eclipses card fraud in value, driven by digital onboarding and cross‑border transactions that exploit weaker authentication in non‑EEA jurisdictions. For fintechs, the data signals a need to shift from perimeter defenses to continuous, behavior‑based monitoring that can flag anomalous remote activity before funds move.

Strong Customer Authentication (SCA) has demonstrably reduced unauthorised card fraud, yet the report reveals that exemptions—contactless limits and trusted‑beneficiary lists—are being weaponised by fraudsters. This paradox highlights the importance of layered security: dynamic risk scoring, step‑up authentication, and device‑fingerprinting must complement SCA rather than replace it. Simultaneously, the rapid rise of SEPA Instant Credit Transfers has introduced a new attack surface where criminals exploit the irrevocability of real‑time rails. Although average loss per instant‑payment fraud case is lower, the 175 % surge in incident volume demands ultra‑fast transaction scoring and the upcoming Verification of Payee (VoP) service to verify beneficiary identities instantly.

Regulators are responding with the EU Instant Payments Regulation and forthcoming PSD3 provisions that tighten liability and enforce stronger anti‑fraud safeguards. The shifting burden of loss toward consumers, especially in credit‑transfer scams, is likely to trigger shared‑liability frameworks and mandatory reimbursement schemes. Fintechs and BaaS providers should therefore integrate real‑time analytics, participate in cross‑border fraud intelligence sharing, and align fraud‑prevention workflows with AML monitoring to meet both operational and compliance expectations. Proactive investment now can mitigate future penalties and preserve customer trust in an increasingly digital payments landscape.