Expert Group on Payment Fraud-related Topics

Stepping up pan-European co-operation to fight and prevent payment fraud has become a key priority among fraud experts in the growing real-time payments ecosystem. This has been confirmed by the industry dialogue at different fora and panels run or supported by the Euro Banking Association (EBA) to work towards a collaborative approach to fraud combatting in the pan-European payments industry. The EBA created the Expert Group on Payment Fraud-related Topics (EGPF) in February 2020.

Objectives

The objectives of the EGPF are to analyse minimum requirements for enabling a pan-European fraud intelligence approach and to define what fraud information and data could be exchanged as part of this approach. To facilitate the work on these matters, the EGPF will also look into the development of a common vocabulary in relation to payment fraud-related topics, to serve in a pan-European context. Based on these deliverables, the Group will explore the feasibility for further phases involving actual data exchange in relation to identified purposes for information sharing at inter-(AS-) PSP level and/or involving third parties.

Background

The SCT Inst Migration Action Round Table (SMART2), launched in February 2018, identified payment-related fraud as a topic requiring specific analysis and additional action, in the instant payment context in particular. A SMART2 Sub-group on fraud detection practices prepared recommendations in the field, which culminated in the issuance of a note by SMART2 on ‘Best practices to support PSPs in detecting/combatting fraud and scam’ in May 2019. Among other items, the note raised the need for:

  • a forum at a pan-European level enabling the exchange and discussion of recent and relevant fraud case experiences and the communication of any related conclusions or guidance to relevant stakeholders
  • a pan-European fraud-related register or information service to share fraudulent/suspicious IBANs or run checks against, as part of the payment initiation/execution process

Following further discussion of these and similar topics by the SMART2 Sub-group on fraud detection practices, the Board of the EBA invited SMART2 to formulate recommendations on the needs for and scope of fraud-related information and data exchange. Based on related recommendations tabled by SMART2 in December 2019, the Board of the EBA decided to launch the EGPF in January 2020.

 

Terms of Reference for the Expert Group on Payment Fraud-related Topics