Payment fraud in Cyprus is on the rise, but the latest
data suggest the country still records lower levels of fraud than the euro area
average. The Central Bank of Cyprus released its first statistical report on
payment fraud covering the second half of 2024, highlighting how criminals
exploit different types of non-cash transactions.
Card Fraud Dominates by Volume
According to the report, card fraud made up 94% of all
fraudulent transactions by volume. However, when measured by value, the largest
losses came from credit transfers, which accounted for 60% of fraudulent
activity. Card payments followed with 39% of the total fraud value.
The findings highlight a clear difference in fraud
patterns: while cards are most frequently misused, high-value fraud tends to
involve tricking account holders into transferring money directly to
fraudsters.
The Central Bank’s analysis shows that 75% of
fraudulent credit transfers involved scams where victims were manipulated into
making payments. In contrast, 99% of card fraud cases stemmed from criminals
using stolen or unauthorized customer information.
The report also found that fraud linked to card use
was almost entirely concentrated in online transactions, despite most
legitimate card payments still taking place at physical points of sale.
Cross-Border Transactions Carry Higher Risk
Fraudulent activity was far more common in
cross-border transactions compared with domestic payments. For card
transactions, the risk of fraud occurring outside Cyprus was about 25 times
higher. This stark difference underscores the challenges
regulators and payment providers face in securing international transactions.
Official figures show that 94% of all fraudulent payment
transactions were card-related, amounting to around 13,000 cases over the
six-month period.
By comparison, all other payment services combined recorded
just about 1,000 fraudulent transactions, underscoring the concentration of
crime in card payments.
Credit transfers accounted for the largest share, €1.8
million, or 60% of total losses, while card fraud followed closely at €1.2
million, or 39%. Fraud across other payment services was negligible, amounting
to less than €50,000.
The euro area showed a similar breakdown in value terms,
though with different proportions. Fraudulent credit transfers accounted for
58% of total losses, while card fraud contributed 30%.
More from Cyprus: Cyprus Assets Under Management Rise 6% to €10.7B, With Nearly Three-Quarters in Private Equity
The Central Bank of Cyprus emphasized that monitoring
and publishing payment fraud data plays a key role in improving transparency
and guiding further regulatory action. The new statistical releases will serve
as a benchmark for assessing trends in future reporting periods.
Meanwhile, a recent report shows that although the
number of fund management entities in Cyprus declined slightly in early 2025,
overall assets under management expanded significantly.
AUM Rises Despite Fewer Fund Managers
According to
the Cyprus Securities and Exchange Commission, the collective investments
sector recorded €10.7 billion in total assets under management in the first
quarter of 2025, reflecting a 6.64% increase from the previous quarter.
This growth came even as the number of supervised
Management Companies and Undertakings of Collective Investments slipped by 1.8%
year-on-year, leaving the total at 322.
This article was written by Jared Kirui at www.financemagnates.com.
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