Jusletter IT

In recent years, the number of fraudulent payment transactions in Europe has significantly increased, when fraudsters use social engineering methods (e.g. phishing or vishing) to manipulate a victim into sharing sensitive personal data or making payment transactions in favor of a fraudster. Concerning the fact that these types of fraud have become more sophisticated, it is still very difficult for potential victims to detect fraudulent behavior. Current anti-fraud measures in PSD2 seem to be insufficient in relation to these new types of fraudulent practices. Due to this fact, the European Commission recently published a proposal for the Regulation of payment services in the internal market, which updated the rules of payment services and strengthened measures to combat payment fraud. The paper introduces the EU proposal in the context of the protection of bank clients against payment fraud based on social engineering methods. The author will mainly focus on the comparison of proposed measures with the current legal framework and its evaluation.