Fee fraud in Cyprus is on the rise, however the newest
information counsel the nation nonetheless data decrease ranges of fraud than the euro space
common. The Central Financial institution of Cyprus launched its first statistical report on
fee fraud masking the second half of 2024, highlighting how criminals
exploit various kinds of non-cash transactions.
Card Fraud Dominates by Quantity
In response to the report, card fraud made up 94% of all
fraudulent transactions by quantity. Nonetheless, when measured by worth, the biggest
losses got here from credit score transfers, which accounted for 60% of fraudulent
exercise. Card funds adopted with 39% of the overall fraud worth.
The findings spotlight a transparent distinction in fraud
patterns: whereas playing cards are most ceaselessly misused, high-value fraud tends to
contain tricking account holders into transferring cash on to
fraudsters.
The Central Financial institution’s evaluation exhibits that 75% of
fraudulent credit score transfers concerned scams the place victims had been manipulated into
making funds. In distinction, 99% of card fraud circumstances stemmed from criminals
utilizing stolen or unauthorized buyer data.
The report additionally discovered that fraud linked to card use
was virtually solely concentrated in on-line transactions, regardless of most
respectable card funds nonetheless happening at bodily factors of sale.
Cross-Border Transactions Carry Larger Danger
Fraudulent exercise was way more frequent in
cross-border transactions in contrast with home funds. For card
transactions, the danger of fraud occurring exterior Cyprus was about 25 occasions
greater. This stark distinction underscores the challenges
regulators and fee suppliers face in securing worldwide transactions.
Official figures present that 94% of all fraudulent fee
transactions had been card-related, amounting to round 13,000 circumstances over the
six-month interval.
By comparability, all different fee companies mixed recorded
nearly 1,000 fraudulent transactions, underscoring the focus of
crime in card funds.
Credit score transfers accounted for the biggest share, €1.8
million, or 60% of complete losses, whereas card fraud adopted carefully at €1.2
million, or 39%. Fraud throughout different fee companies was negligible, amounting
to lower than €50,000.
The euro space confirmed the same breakdown in worth phrases,
although with totally different proportions. Fraudulent credit score transfers accounted for
58% of complete losses, whereas card fraud contributed 30%.
Extra from Cyprus: Cyprus Property Beneath Administration Rise 6% to €10.7B, With Practically Three-Quarters in Personal Fairness
The Central Financial institution of Cyprus emphasised that monitoring
and publishing fee fraud information performs a key position in bettering transparency
and guiding additional regulatory motion. The brand new statistical releases will serve
as a benchmark for assessing tendencies in future reporting intervals.
In the meantime, a current report exhibits that though the
variety of fund administration entities in Cyprus declined barely in early 2025,
total property underneath administration expanded considerably.
AUM Rises Regardless of Fewer Fund Managers
In response to
the Cyprus Securities and Trade Fee, the collective investments
sector recorded €10.7 billion in complete property underneath administration within the first
quarter of 2025, reflecting a 6.64% improve from the earlier quarter.
This development got here even because the variety of supervised
Administration Firms and Undertakings of Collective Investments slipped by 1.8%
year-on-year, leaving the overall at 322.
This text was written by Jared Kirui at www.financemagnates.com.
Supply hyperlink