Payment fraud in Cyprus: €3.7m in losses over one year – Central Bank of Cyprus data
The value of payment fraud in Cyprus increased 16% in the second half of 2025, reaching €3.7 million, according to a Central Bank of Cyprus report. Credit transfers accounted for 56% of total losses.
Cyprus: €3.7m losses from payment fraud in second half of 2025
Nearly €3.7 million were lost to payment fraud in Cyprus during the second half of 2025 — a 16% increase in value, despite a 5% decrease in the number of incidents. These figures come from a statistical report by the Central Bank of Cyprus (CBC) published on Tuesday, as reported by Philenews.
Approximately 14,000 fraud incidents were recorded in the six-month period. However, the CBC notes that fraud rates for most payment methods in Cyprus remained below the eurozone average.
Highest average value per incident in the eurozone
In credit transfers, Cyprus recorded the highest average value of fraudulent transactions among all eurozone countries: €6,300 per incident, compared to an average of €1,800 across the eurozone. This figure exceeds even the average value of legitimate credit transfers in Cyprus, which stood at €4,500.
"Even a limited number of fraud incidents can be associated with significant financial losses," the CBC states characteristically.
Credit transfers represented €2 million — that is, 56% of the total fraud value. Card payments followed with €1.6 million (43%). In terms of number of incidents, however, cards dominate: approximately 13,000 incidents, or 93% of the total.
Fraud moves online
Although card payments at physical points of sale account for 70% of card transactions in Cyprus, only 4% of fraud involved such transactions. Conversely, online payments, which correspond to 30% of transactions, accounted for 96% of card fraud incidents and 94% of the corresponding value.
The fraud rate on credit cards was approximately 1.5 times higher than on debit cards, both in terms of number and value.
Payer manipulation the dominant method
In credit transfers, 70% of fraud involved "payer manipulation": the account holder is deceived into transferring money to an account controlled by the perpetrator. The remaining 30% involved unauthorised transactions.
The CBC also notes that in credit transfers, consumers and businesses bear approximately 95% of the losses over time, whilst in cards and electronic money the bulk falls on other involved parties.
Instant transfers: double the risk
Instant credit transfers show higher fraud rates compared to traditional transfers. In Cyprus, the fraud rate on instant transfers — in terms of value — was on average approximately double. The average value per fraud incident in instant transfers was €3,400, compared to €1,500 which is the average value of instant transfers in general.
Verification of Payee (VoP), which became mandatory from October 2025 for payment service providers in the eurozone, is expected to contribute to limiting this form of fraud. Its results are not yet reflected in the report's data.
Strong authentication reduces risk
According to the CBC, the application of rigorous Strong Customer Authentication (SCA) is associated with significantly lower fraud rates. In Cyprus, the fraud rate on card payments without SCA was almost four times higher in terms of number and almost three times higher in terms of value, compared to transactions where SCA was applied.
The majority of fraud incidents involved cross-border transactions, despite the fact that domestic payments constitute the vast majority of total transaction volume.
Eurozone: 8% increase in total value
At eurozone level, the total value of fraud increased by 8%, reaching €1.9 billion in the same six-month period, whilst the number of incidents remained essentially stable, at approximately 9 million.
The CBC concludes that the concentration of fraud in online and cross-border transactions, as well as in high-value credit transfers, "makes it necessary to continually strengthen prevention measures and mechanisms for managing the associated risks".
Source: Philenews