To match the speed of instant payments and their increasing adoption throughout Europe, fraud prevention and detection tools not only have to be fast but should also be able to follow fraud across borders and allow relevant parties to join forces in fighting it.
To support industry efforts in this area, the Euro Banking Association (EBA) launched the Expert Group on Payment Fraud-related Topics (EGPF) in 2020 to consider a pan-European fraud intelligence approach. 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 looked into the development of a common vocabulary in relation to payment fraud-related topics, to serve in a pan-European context.
The EBA released version 2.0 of the EBA Fraud in July 2021 to the financial institutions in the Association’s membership for a first try-out phase with the aim to gather practical experience in deploying a uniform taxonomy at pan-European level.
The first round of the annual review and updating process led to the release of version 3.0 of the EBA Fraud Taxonomy in June 2022 to the EBA members.
In October 2022, the Board of the EBA resolved to make the EBA Fraud Taxonomy publicly available.
The EBA published the EBA Fraud Taxonomy version 3.1 in October 2022, which contains changes to the introduction (only) to bring clarity on the usage rights ahead of 1 January 2023, when version 3.1 will come into effect.
The EBA Fraud Taxonomy developed by the EGPF enables – for the first time – a pan-European approach to payment fraud categorisation with the aim to contribute to the combatting of payment-related fraud at a pan-European level.
It is applicable to both payment fraud and card fraud. Implementation of the EBA Fraud Taxonomy could help payment service providers (PSPs) and intelligence-sharing initiatives to better combat payment fraud for the following reasons:
• The taxonomy can play a role in facilitating intelligence and data sharing across national borders.
• It provides a common pan-European vocabulary for fraud types to improve fraud reporting, prevention and detection.
• It supports PSPs in developing effective fraud prevention campaigns for their customers.
Link: https://www.paymentscardsandmobile.com/the-eba-fraud-taxonomy-is-now-publicly-available/