The EU Banking Authority (EBA) today (19 December) issued new regulations to beef up security of internet payments across the bloc to counter cybercrime, which is on the rise.
The guidelines require that payments service providers (PSPs) carry out stronger customer authentication before proceeding with online payments.
PSPs will also be required better to assist customers in relation to internet payment frauds and to initiate customer awareness programmes to ensure that users understand risks.
The guidelines – drawn up by SecurRe, a voluntary cooperation of central banks and regulators – will apply to all EU PSPs and must be implemented by PSPs by August next year.
The move came in response to evidence of a marked rise in fraud relating to internet payments. The most recent pan-EU figures showed on-line fraud during 2012 caused €794 million in losses, an increase of more than one-fifth (21%) from the previous year.
The rise in internet fraud comes against a decline in the more traditional form of ‘hold-up’ bank robbery.
According to data collected by the European Banking Federation, 2,347 bank robberies were reported by the 32 countries that are represented in the EBF over 2013, 11% fewer than the year before.
A total of 175 attacks on cash-in-transit were registered by the EBF, down 29%. These figures continued a four-\ year downward trend.