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The European Banking Authority’s (EBA) Consumer Trends Report 2024/25 has identified payments fraud as one of the most pressing issues affecting EU consumers, alongside consumer indebtedness and unwarranted de-risking.
The latest iteration of the biennial report, which is based on data from national regulators, consumer groups and industry bodies, highlights the increasing sophistication of fraudsters, a surge in buy now, pay later (BNPL) lending, and financial exclusion being triggered by de-risking policies in retail banking.
Fraud remains the most pressing concern, with criminals continually adapting to circumvent security measures such as the EU’s strong customer authentication (SCA) requirements.
Social engineering scams are becoming more widespread and phishing and AI-driven scams are also on the rise.
In many cases, disputes over liability between consumers and payment service providers leave victims to bear the financial burden of these fraudulent transactions, the EBA said.
However, this is likely to change as new regulatory requirements in the Instant Payments Regulation (IPR) and the Payment Services Regulation (PSD3) come into force.
Fraud involving prepaid cards is also a frequent issue, with disputes over payments creating further challenges.
Fees and e-money services
Beyond fraud, fees and accessibility also remain major pain points for consumers. The EBA says many complaints highlight a lack of transparency in cost structures, with concerns over unclear fees, delays in credit transfers and issues related to virtual IBAN discrimination.
The growth of e-money services presents further risks, with regulators warning of unclear terms and conditions, particularly around fees and the safeguarding of funds — something that has been highlighted by local regulators in EU member states such as Malta, Lithuania and Ireland.
Consumer confusion between e-money and crypto-assets creates another layer of complexity, while security concerns persist over unauthorised transactions.
Financial exclusion and de-risking
The EBA’s report also notes that the shift towards digital banking has exacerbated financial exclusion, particularly for vulnerable consumers.
In addition, the closure of bank branches and ATMs has made it harder for certain groups, especially the elderly and those in rural areas, to access essential banking services.
The report also raises concerns about "unwarranted de-risking", whereby banks deny or terminate accounts for entire categories of consumers due to anti-money laundering and counter-terrorism financing (AML/CTF) policies.
Vulnerable groups, including migrants, cross-border workers and individuals with poor credit histories, face increasing difficulty accessing financial services. The EBA warns that such blanket policies risk pushing legitimate consumers into financial exclusion.
Echoing member states such as the Netherlands, the authority warns that the rapid expansion of BNPL and other short-term credit products is contributing to rising consumer debt.
Many lenders fail to conduct adequate creditworthiness assessments, and consumers, particularly young people and those with lower financial literacy, often underestimate the risks of accumulating multiple small debts.
The report calls for stricter regulation and greater transparency in BNPL offerings, something which is likely to be triggered by the updated Consumer Credit Directive.
