Payments: fraud rates are low, but ‘broken phone scams’ are on the rise

Payment cards are the most commonly used tool for fraud, but bank transfers expose victims to a significantly higher average financial loss. A step forward, however, is represented bythe requirement to verify the beneficiary’s IBAN, introduced bythe Instant Payment Regulation. This is the picture painted by the Bank of Italy in its ‘Report on Fraudulent Payment Transactions in Italia – Second Half of 2025’, published on 20 July 2026. In the second half of 2025, in fact, the highest number of fraudulent transactions occurred through the use of payment cards: as many as 457,000. Electronic money, the second most common method, was used in 269,000 cases. By contrast, significantly lower figures were recorded for bank transfers (31,900) and ATM withdrawals (19,800). However, in terms of financial value, it is bank transfers carry the most weight in the fraud landscape: €88.7 million from June to December 2025. Cards and e-money follow some way behind, totalling 36.5 and 11.1 million euros respectively.

According to Via Nazionale, the data provide an overview of the various use cases and the uptake of payment instruments. Bank transfers are mainly used for payments, including large sums, between individuals and between businesses, whilst cards and electronic money are primarily used to purchase goods and services. Unlike bank transfers, therefore, they generate ‘a high number of transactions but with a lower average value’. In fact, the study notes that the average value of fraudulent transactions is higher for standard SEPA bank transfers (€5,509) and instant (€1,850) than for over-the-counter withdrawals (€505), card payments (€80) and electronic money payments (€41).

Overall, the fraud rate remains low: 10 cases per 100,000 transactions, amounting to three euros per 100,000 euros transacted. As regards credit transfers, there are four fraudulent transactions per 100,000, amounting to two euros per 100,000 euros transferred. A ‘significantly higher’ incidence of fraud is observed among instant SEPA credit transfers: 12 cases per 100,000 transactions, amounting to 28 euros per 100,000 euros transferred. Compared with the previous half-year and the same period in 2024, however, there has been a significant reduction: down 38 per cent compared with the first six months of 2025 and down 53 per cent compared with the second half of 2024. According to Palazzo Koch, this was due to the strengthening of prevention measures and awareness-raising initiatives implemented by payment service providers (PSPs) following the entry into force of the Instant Payment Regulation. The provisions of the EU regulation also include the verification of the beneficiary’s IBAN.

Over-the-counter withdrawals, on the other hand, are fraudulent in five out of every 100,000 cases, amounting to 10 euros for every 100,000 withdrawn. The fraud rate for electronic money is higher, though down on the first half of last year: 9 cases per 100,000 and 17 euros per 100,000 transacted for debit and credit cards, rising to 18 cases per 100,000 and 24 euros per 100,000 transferred for prepaid cards .

Overall, transactions carried out remotely pose a greater risk than those carried out in person via POS terminals. However, the gap has narrowed compared with the first half of 2025: whilst in-person transactions show no significant changes, the incidence of fraud in e-commerce has fallen. Similarly, cross-border transactions prove to be more risky than domestic ones, particularly when payment cards and electronic money are used. In particular, although only two per cent of card and e-money transactions take place outside the European Economic Area (EEA), it is there that a quarter and a third, respectively, of the fraud associated with these instruments occurs.