Payment fraud in Cyprus: fewer incidents, damages of €3.7 million
The Central Bank of Cyprus records 14,000 payment fraud incidents in the second half of 2025, with total value increased by 16%.
Cyprus: fewer payment frauds, but higher losses in the second half of 2025
According to data reported by Philenews, the latest figures from the Central Bank of Cyprus (CBC) for the second half of 2025 reveal a concerning trend: whilst the number of payment fraud incidents declined, the financial losses resulting from them increased significantly.
During this period, approximately 14,000 fraud incidents were recorded, down 5% compared to the corresponding period in 2024. Nevertheless, the total value of fraud surged by 16%, reaching nearly €3.7 million. The fraudsters struck fewer times, but their strikes yielded greater "spoils".
Cyprus first in average value of fraudulent transfer in the eurozone
Cyprus remains below the eurozone average in fraud rates for most payment methods. The significant exception is found in credit transfers: there the country shows a slightly higher rate than the European average, whilst standing out particularly for the amounts lost in each successful incident.
Specifically, Cyprus recorded the highest average value of fraudulent transaction via credit transfer among all eurozone countries: €6,300 per incident. This amount is more than triple the eurozone average (€1,800) and even exceeds the average value of a normal credit transfer in Cyprus, which stands at €4,500.
Cards: 93% of incidents, but not the greatest financial impact
Card payments continue to dominate in number of incidents. During the second half of 2025, approximately 13,000 cases—93% of the total—involved cards. In the euro area, the corresponding rate is 79%. This difference, according to previous analysis by the CBC, reflects the greater penetration of payment cards in the Cypriot market.
However, the greatest financial damage did not come from cards. Credit transfers cost approximately €2 million, representing 56% of the total value of fraud. Cards followed with losses of €1.6 million, or 43% of the total. In the euro area, the picture is similar: credit transfers accounted for 65% of the total value of frauds, compared to 28% for card payments.
The payer bears the losses
Particularly concerning is the issue of loss distribution. In frauds via credit transfer, the losses are borne primarily by the users themselves—citizens and businesses—and not by credit institutions. This is directly connected to the so-called payer manipulation fraud: the perpetrator convinces the victim to issue the transfer instruction themselves, thereby bypassing technological security measures.
This is the most common form of fraud in credit transfers, a fact that highlights a critical conclusion: technological safeguards alone are insufficient when the fraudster manages to bypass security systems by manipulating the user directly.
Source: Philenews