Fraud in Cyprus Payments Surges 34% in Late 2024
Central Bank of Cyprus report shows sharp rise in fraud cases, with card payments and cross-border transactions most affected.
Fraud incidents in Cyprus payments increased in the second half of 2024, according to the Statistical Report of the Central Bank of Cyprus (CBC). Despite the rise, Cyprus remains below the euro area average in both the volume and value of fraudulent transactions.
The total volume of fraud rose by 34%, reaching 14,000 transactions, while the overall value climbed 26% to €3 million compared to the same period in 2023. In the euro area, increases were lower—7% in volume and 22% in value.
Card Payment Fraud Dominates Cases
The sharpest increase was recorded in card payments, with 13,000 incidents, accounting for 94% of all cases. Despite the high number, the financial loss from cards stood at €1.2 million, representing 39% of the total value of fraud. Nearly all incidents (99%) involved unauthorized transactions, primarily in online purchases, with 95% of cases occurring digitally. Fraud at physical points of sale was minimal.
Credit Transfer Fraud Causes the Largest Losses
Fraud through credit transfers was fewer in number but caused the greatest damage, totaling about €1.8 million, or 60% of all losses. The most common type was payer manipulation, known as Authorized Push Payment (APP) fraud, which accounted for 75% of credit transfer incidents.
Cross-border payments carried a significantly higher risk. For cards, transactions outside Cyprus were 25 times more likely to be fraudulent compared to domestic ones. In credit transfers, cross-border payments were 10 times more vulnerable.
Strong Customer Authentication Reduces Fraud
The use of Strong Customer Authentication (SCA) proved critical in reducing fraud, as transactions secured with SCA showed fraud rates five times lower than those without. By contrast, cheques and direct debits recorded negligible fraud cases in both volume and value.
Despite the increase, fraud rates in relation to total payments remain extremely low—below 0.002% for card transactions and under 0.01% for credit transfers. Cyprus continues to remain below the euro area average in both fraud volume and value.
