SEPA Fraud Potential Worries Some European Corporate Treasurers
A survey of European corporate treasurers by Experian Payments has found that 32 percent are concerned about a possible rise in direct debit fraud following the introduction of SEPA-compliant cross-border direct debits.
Direct debits involve a biller setting up a mandate to take regular, automated payments from a customerÆs bank account. One of the objectives of SEPA (Single Euro Payment Area) is to facilitate and harmonize direct debits across the member states of the European Union. By 2010, the European Union expects cross-border direct debits to be SEPA-compliant. Criminals are increasingly turning to non-card operations such as direct debits, Experian Payments says. Direct debit fraud is potentially simpler than credit card fraud, it says. This is because, as long as fraudsters can provide a valid name and address or name and bank account number, they can open a billing account and create regular (direct debit) payments. Cellphone subscriptions are a popular area for direct debit fraud, according to Experian PaymentsTreasurers are concerned that European countries with inadequate banking regulatory systems might provide an operational base for pan-European direct debit fraudsters, Experian Payments says. The survey also found that 20 percent of respondents think cheque fraud is likely to be a big issue in SEPA. However, with electronic payments expanding rapidly and expected to eradicate paper payments, cheque fraud will not be a problem in the long run, Experian Payments says. UK-based banking software firm Experian Payments was previously known as Eiger Systems. Related Links
www.experianpayments.com
www.experiangroup.com
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