The European Commission is moving toward a bold policy shift that would require banks and payment providers across the EU to share fraud-related data. This initiative is part of a broader reform package intended to fortify the EU payment system against increasingly sophisticated financial crime—especially fraud.
A Coordinated Response to a Growing Threat
Under the proposed rules, financial institutions would be obliged to exchange information on fraud incidents, including patterns of attempted scams and emerging threat vectors. The aim is to foster faster detection and prevention by enabling banks to recognize suspicious behavior immediately—rather than relying on siloed internal systems.
Holistic Package of Systemic Reforms
This data-sharing mandate is one element within a larger strategy. The overhaul seeks to revise current payment regulations to enhance consumer security, streamline incident reporting, and promote cross-border cooperation among financial providers.
How It Could Enhance Fraud Defenses
- By pooling fraud intelligence, banks can identify suspicious trends more quickly, reducing reliance on lagging manual reporting.
- Shared data would help link fraudster behavior seen in one bank to potential attacks at others.
- Key for tackling scams like authorized push payments, which often unfold rapidly across multiple accounts and institutions.
Key Stakeholders Mobilize
European regulators are consulting with national banking associations, payment firms, and data protection authorities. The goal is to strike a balance between enabling transparency and upholding strict EU privacy rules—especially GDPR.
Next Steps & Timeline
As the legislative team works on drafting the regulation, expect detailed technical and legal discussions to commence. This will include:
- defining what fraud data qualifies for sharing,
- setting standards for anonymization or hashing to protect customer privacy, and
- establishing mechanisms to detect misuse or data breaches.
A draft proposal is likely later this year, with implementation potentially unfolding in stages over the next 12–18 months.
The Stakes Are High
Fraud and payment-enabled financial crime continue to rise across Europe. By creating a shared intelligence network, regulators aim to shift the system from reactive to proactive. Whether banks can cooperate effectively—within privacy boundaries—will determine the success of this ambitious initiative.
