The unveiling of the new EU payments legislation marks a significant step in the ongoing battle against fraud and online scams. According to De Matteis, this legislative revision requires merchants to transmit more comprehensive information, thereby enhancing security measures beyond Strong Customer Authentication (SCA).
This approach, aimed at preventing fraudulent activities, is bolstered by the insights of Wims Mijs, CEO of the European Banking Federation (EBF), who emphasizes the importance of a robust open banking framework in countering the rising threats of online scams. The EBF highlights the challenge of detecting scams, which can manifest across various platforms, including social media. To address this issue, the article underscores the need for collaborative efforts among stakeholders across the payments chain, such as telecom operators and internet platforms, to adhere to legal obligations for preventing, detecting, and mitigating fraud. As the EU advances towards this payment reform, the emphasis on collective responsibility and coordinated action emerges as a pivotal strategy to fortify the financial ecosystem against the evolving landscape of digital fraud.