JOINT PRESS RELEASE – FOR IMMEDIATE RELEASE
European credit sector associations call for boosting fraud prevention efforts across the fraud chain
Brussels, 17 September 2024 – The European Credit Sector Associations, composed of the European Association of Cooperative Banks (EACB), the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG) welcome the publication by the Euro Retail Payments Board (ERPB) of its Working Group Report on fraud related to retail payments. On top of the three Associations, other key stakeholders from the private and public sector have actively contributed to the Report. It identifies four “gamechanger” actions that are necessary to strengthen the fraud prevention and mitigation across Europe, as well as a set of best practices identified to combat fraud.
Sanne van der Neut, co-Chair of the working group on behalf of the EACB, representing the supply side, highlights: “This report comes at an important point in time. Fraudsters are getting increasingly inventive and the fraud chain is becoming more complex. Fighting this needs a multistakeholder approach and one that goes beyond the payment sector.”
The report is the outcome of a collaborative effort that brings together the perspectives and unique insights from a wide range of parties affected by fraud, including representatives from consumer and merchant organisations, bank and non-bank payment service providers, central banks, the European Banking Authority, the European Commission, the European Data Protection Board, and Europol.
The four “gamechangers” identified for a more effective prevention and mitigation of fraud are:
1) Effective cross-sectoral collaboration beyond the payment industry and shared responsibilities;
2) The sharing of fraud insights and data;
3) A supervisory enforcement and cooperation at EU level across sectors beyond the payment industry;
4) Ensuring that product design prioritises consumer protection.
For each gamechanger, several actions are recommended that EU, national authorities, and the private sector can implement. It is especially noted that these recommendations can be particularly relevant to the work of the European Parliament and the Council, in the context of the ongoing negotiations on the proposal for a Regulation on payment services in the internal market (PSR) and beyond. The conclusions of this cross sectoral collaboration highlight that digital fraud and scams relate to a far broader and more complex matrix than the point of payment alone and should be regulated in a sufficiently comprehensive way outside the auspices of payments regulation.
The paper also includes a list of best practices, intended to serve as a collection of measures that public and private actors can draw upon when combating fraud.
The ERPB Working Group, launched in May 2023, was prompted by the rise of fraudulent activities accelerated by digitalization and social engineering. This initiative underscores the need for all actors in the fraud chain to collaborate more efficiently in preventing and combating fraud.
Read more about the gamechangers in the fight against fraud here.
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DORA | RTS on ICT Incident Classification based on EBF’s Position
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Brussels, 15 January 2024 – On June 19th, 2023, the European Supervisory Authorities (ESAs), EBA, EIOPA, and ESMA, published the first batch of Consultation Papers for the technical standards mandated by the Digital Operational Resilience Act (DORA) which aims at collecting market participants’ feedback on their development.
The European Banking Federation (EBF) and Deloitte have held a joint workshop to gather feedback from the EBF’s members, specifically around the Consultation Paper for the RTS “on specifying the criteria for the classification of ICT-related incidents, materiality thresholds for major incidents and significant cyber threats under Regulation (EU) 2022/2554” that will be submitted to the European Commission on January 17th, 2024.
Below are reported the main key attention points raised by the EBF members during the consultation of the Draft RTS:
- Unclear definition of Critical Services
- Sound Application of Proportionality Principle and Risk-based Approach
- The Challenges in the Notification of Significant Threats
A full overview of the discussion can be found here.
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For more information
Alexandra Maniati, Senior Director of Innovation & Cybersecurity, a.maniati@ebf.eu
Dimos Karalis, Policy Adviser – Innovation & Cybersecurity, d.karalis@ebf.eu
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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses, and innovators everywhere.
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]]>PRESS RELEASE
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Paper trail ends in jail time for 1013 money mules
2822 Banks and financial institutions join forces with law enforcement agencies in global effort against money laundering
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Law enforcement agencies from 26 countries, in collaboration with Europol, Eurojust, INTERPOL and several private industry partners, have once again joined forces to combat a key facilitator of money laundering: money mules and their recruiters. In June, October and November 2023, several operational phases identified 10759 money mules and 474 recruiters, leading to the arrest of 1013 individuals worldwide.
The ninth edition of the European Money Mule Action (EMMA 9), which was funded by EMPACT (https://www.europol.europa.eu/crime-areas-and-statistics/empact) and led by the Netherlands, was the continuation of an established international law enforcement effort. As in previous years, it involved operations around the globe, such as in Colombia, Singapore and Australia.
Results of the operation include:
- 10759 money mules identified
- 474 recruiters/herders identified
- 1013 individuals arrested
- 10736 fraudulent transactions reported
- 4659 investigations initiated
- 2822 banks and financial institutions supported the action
- EUR 100 million losses reported
- EUR 32 million in losses prevented
EMMA is the most extensive international operation of its kind, grounded in the principle that information sharing between the public and private sectors is essential in combating today’s sophisticated crimes. The European Banking Federation (EBF) has been the first industry partner to EMMA since its inception. In this year’s endeavour, with ongoing coordination of the EBF, approximately 2822 banks and financial institutions collaborated with law enforcement. This joint effort also involved online money transfer services, cryptocurrency exchanges, online travel providers and ‘Know Your Customer’ (KYC) companies, as well as multinational computer technology corporations.
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Crime fuelled by crime
As a coordinated action conducted across Europe and the globe, EMMA aims to fight money mule networks benefitting from different types of criminality, such as cyber-enabled fraud against financial institutions and their customers. Building on investigations conducted with the support of private industry partners, law enforcement authorities can then take action, such as arrests, seizures, house searches and interviews. Operation EMMA’s primary goal is to enhance and exchange cross-border information between the countries involved, thus making a significant contribution to the fight against money mule networks. By doing so, it aims to prevent financial losses and raise awareness about this widespread problem.
The EMMA initiative has successfully strengthened bolstering cross-border collaboration to combat and dismantle money mule networks engaged in international money laundering. These networks operate by transferring (digital or cash) funds received from third parties to other recipients, while earning a commission in the process. The majority of investigations involve cross-border cases: either money is transferred from one country to another, or organised money mules travel globally to open bank accounts, often using fake documentation to deceive KYC procedures.
Recent trends in a globalised criminal landscape
Investigators have reported a number of recent developments in the criminal landscape of international money laundering. One EU Member State has discovered that migrants from Ukraine, seeking refuge from war, are being increasingly targeted as unwitting accomplices in crime. Exploiting their vulnerability and economic distress, criminals coerce them into inadvertently laundering money by forcing them to open bank accounts.
Bank impersonation crimes are also on the rise, with criminals posing as bank officials predominantly targeting elderly people and persuading them to open new accounts. Perpetrators often visit victims in person to obtain copies of identity documents and signatures.
Another alarming trend involves the fraudulent use of artificial intelligence to create fake identities, thus making it possible to bypass KYC security features during online account creation.
In yet another emerging modus operandi, criminals target younger persons and provide them with online means of payment, such as gift cards. These are activated in a tokenisation process for purchasing goods or electronic devices. The mules then hand over the purchased goods to the criminals, who then offer them for sale on the most popular e-commerce marketplaces, receiving a percentage of the illegal proceeds either in cash or in goods.
Investigations have revealed that a series of intricate online fraud schemes are funnelling money into accounts operated by money mules. These schemes include investment scams, compromised business emails, bogus holiday rental listings, middleman scams, phishing, messenger app fraud, help desk fraud, counterfeit bank cards and the use of crypto values transferred from virtual currencies exchanges to e-wallets. This global crackdown aims to make it more difficult for criminals to operate and to disguise the flow of their illicit earnings.
Europol’s role
Europol supported the planning and preparation of all the operation’s phases. The Joint Cybercrime Action Taskforce (J-CAT) (https://www.europol.europa.eu/operations-services-and-innovation/services-support/joint-cybercrime-action-taskforce) supported the actions by facilitating information exchange between law enforcement authorities. During the operational phase, Europol’s analytical support helped to identify the connections between cross-border cases and the money mule networks. Additionally, Europol coordinated and aligned the EMMA 9 awareness campaign (https://www.europol.europa.eu/operations-services-and-innovation/public-awareness-and-prevention-guides/money-muling) with the participating countries and private industry partners.
Participating countries:
Australia, Austria, Bulgaria, Cyprus, Colombia, Czech Republic, Denmark, Estonia, Greece, Hong Kong (China), Hungary, Ireland, Italy, Latvia, Moldova, Netherlands, Poland, Portugal, Romania, Singapore Slovenia, Sweden, Spain, Ukraine, United Kingdom, United States
Participating agencies:
Europol, Eurojust, INTERPOL
Private industry partners:
European Banking Federation, Coinbase, Fourthline, Santander, Tripadvisor, Western Union
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]]>EBF KEY CONSIDERATIONS
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EBF key considerations following the publication of the Cyber Resilience Act (CRA) proposal
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BRUSSELS, 6th March 2023 – Following the publication by the European Commission of the proposal for a Regulation on horizontal cybersecurity requirements for products with digital elements, i.e. the Cyber Resilience Act (CRA), the European Banking Federation (EBF) presents some key considerations of the European banking sector on the published text.
The EBF acknowledges that rules on digital products would contribute to achieving higher cybersecurity levels throughout the entire supply chain. Users of such products, both consumers and business -including banks- would benefit from minimum requirements that would apply to vendors of those products.
However, the EBF is of the view that the financial sector should be excluded from the scope of the CRA proposal, as the recently adopted DORA Regulation provides an extensive cybersecurity and digital operational resilience framework for banks which is equivalent -if not more detailed and comprehensive- to the one introduced by the CRA. It is therefore crucial that DORA should function as lex specialis to the CRA and this should be explicitly mentioned in the proposal’s text, in order to avoid confusion, duplications and overlaps in the rules and requirements on the EU level.
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For more information please contact:
Alexandra Maniati
Senior Director, Innovation & Cybersecurity, a.maniati@ebf.eu
Dimos Karalis
Policy Adviser – Cybersecurity & Innovation, d.karalis@ebf.eu
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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together 32 national banking associations in Europe that together represent a significant majority of all banking assets in Europe, with 3,500 banks – large and small, wholesale and retail, local and international – while employing approximately two million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that reliably handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to a single market for financial services in the European Union and to supporting policies that foster economic growth.
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]]>FROM THE EUROPEAN BANKING FEDERATION:
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2 469 money mules arrested in worldwide crackdown against money laundering
Law enforcement prevented €17.5 million from being laundered by money mules in three-month action
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Law enforcement from 25 countries, supported by Europol, Eurojust, INTERPOL and the European Banking Federation (EBF) have joined forces to crack down one of the most important enablers of money laundering: money mules and their recruiters.
During an operational phase carried out between mid-September to end of November 2022, 8 755 money mules were identified, alongside 222 money mule recruiters, and 2 469 individuals were arrested worldwide.
Now in its eighth edition, the European Money Mule Action (EMMA8) has gone international, with actions carried out in as far as Colombia, Singapore and Australia.
EMMA is the largest international operation of its kind, built around the idea that public-private information sharing is key to fighting complex modern crimes. This year, and with the continuing coordination of the EBF, around 1 800 banks and financial institutions supported law enforcement in this action, alongside online money transfer services, cryptocurrency exchanges, Fintech and KYC companies, and multinational computer technology corporations.
Overview of the results
• 2 469 money mules arrested
• 1 648 criminal investigations initiated
• 4 089 fraudulent transactions identified
• € 17.5 million intercepted
Participating countries
Australia, Austria, Bulgaria, Colombia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Singapore and Hong Kong (China), Ireland, Italy, Moldova, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Sweden, Switzerland, Spain, United Kingdom, United States.
A link in the money laundering chain
Have you ever been asked to help transfer money by:
• An online friend or love interest?
• Someone offering a way to make easy money?
• Someone claiming to need help as they can’t use their own bank account?
If yes, you may have been talking to a money mule recruiter – and if you did what they asked, you may have committed a crime.
The issue may seem trivial, yet the amount of criminal money being laundered through this method is not. Money mules are a significant part of the money laundering landscape, enabling criminals to swiftly move funds across a network of accounts, often in different countries.
The use of money mules is especially widespread in cybercrime, with the mules transferring the proceeds from their jurisdiction to the criminal’s home country.
#DontBeaMule
This week Europol, together with international partners, the European Banking Federation and financial institutions, will be raising awareness about this crime and its criminal implications through the #DontBeaMule campaign.
The campaign is available for download in 26 languages and will inform the public about how these criminals operate, how they can recognise the signs and what to do if they become a target.
Do you think you might be used as a mule? Act now before it is too late: stop transferring money and notify your bank and your national police immediately.
EMMA8 was carried out in the framework of the European Multidisciplinary Platform Against Criminal Threats (EMPACT) Cybercrime OFS Operational Action Plan led by the Netherlands.
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]]>THIS PAGE WAS LAST UPDATED ON 8 JUNE 2020
The European Banking Federation updated its position paper on cyber incident reporting by including a new annex describing the Danish Joint Solution for reports on IT Security Events (FLIIS), a successful example of centralised reporting scheme.
The establishment of a centralised hub, aimed at collecting from financial institutions all reports covering incidents and submitting them to the competent authorities, should be considered as the preferred model for reporting of cyber incidents. By fulfilling the above functions, the centralised hub would not only channel and coordinate the submission of reports more quickly and efficiently but also indirectly facilitate the monitoring of cyber risks and trends at the national level.
KEY MESSAGES
This document aims to address the fragmentation of the EU cyber incident reporting framework, resulting from the existence of several different Incident Reporting Requirements across Europe, and to make proposals for regulators and policymakers for fostering information sharing and cooperation between Financial Institutions and Supervisory Authorities.
Depending on the type of incident, the reporting entity and the different legislations that apply, the current regulatory framework for incident reporting is characterised by:
• Different taxonomies;
• Different timelines, thresholds, information requirements and multiple templates for reporting;
• Various actors involved, from both the sender and receiver sides;
• Insufficient clarity in existing communication channels between public bodies and authorities (e.g. Europol, national law enforcement, national financial regulatory bodies, national CERTs).
These elements create additional regulatory and operational burdens that financial institutions have to abide by during or immediately after having suffered a cyber incident1. They also prevent the creation of more centralised and uniform mechanisms that can speed up the reporting process and enable a smoother exchange of information and good practices. Due to the complex rules and reporting channels, existing different requirements result in coordination and compliance challenges.
In order to ensure that financial institutions are able to quickly and effectively report cyber incidents without at the same time sacrificing proper incident management and recovery process, and very much in line with the ESAs Joint Advice on legislative improvements, the European Banking Federation (EBF) makes the following proposals for supervisors and regulators:
• Establish a central reporting and coordination hub in each Member State;
• Harmonise reporting thresholds and create a common taxonomy for cybersecurity incidents;
• Foster public-private real-time collaboration between regulators, supervisors, law enforcement, financial institutions and other cross-sectoral infrastructure actors;
• Further involve national CERTs in information sharing;
• Introduce a regular bi-directional information flow between regulators/ supervisors and the industry.
For more information:
Alexandra Maniati
Head of Cybersecurity & Innovation
a.maniati@ebf.eu
+32 25083736
Sergio Tringali
Policy Adviser
s.tringali@ebf.eu
+32 25083724
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]]>EBF key messages on the Commission consultation
on a Digital Operational Resilience Framework
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Publication date: 6 April 2020
The EBF welcomes the initiative of the European Commission to bring forward legislative proposals for fostering the digital operational resilience framework for financial services with a view to harmonise rules across the EU. The interconnectedness of all actors within the financial ecosystem, incl. third party providers, and the evolution of ICT risks highlight the need for a common level of minimum security for the financial sector as a whole, based on international coordination.
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CONTACT:
Alexandra Maniati, Director, Cybersecurity & Innovation, a.maniati@ebf.eu
Iliana Koutoulakou, Policy Adviser Compliance, Tax & Security, i.koutoulakou@ebf.eu
Media:
Nahuel Mercedes, Communications Officer, n.mercedes@ebf.eu
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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
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]]>POSITION PAPER
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European Commission’s DORA proposal (2020): EBF position
BRUSSELS, 03 May 2021 – The adoption of innovative technology by European banks requires a balance between a reliable and consistent framework of financial regulation and flexibility to adapt to changing business models. The inherently cross-border nature of digital service solutions needs to be addressed by banks, regulators, and digital service providers on common ground, looking for the secure facilitation of financial service innovation across Europe. An appropriate and harmonized pan-European legal framework is key to facilitate adoption of innovative technology.
Consequently, the EBF welcomes the European Commission’s aim to enhance operational resilience in Europe. The financial industry’s own considerations will benefit from more harmonized ICT-related rules at the European level, aligned with the existing supervisory framework today. Detrimental fragmentation of the regulatory framework should be avoided, addressing risks consistently and proportionately across European jurisdictions without hampering the financial industry’s ability to apply innovative services.
With this position paper, the EBF addresses the proposal for a Regulation on digital operational resilience for the financial sector, as published by the Commission in September 2020.
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For more information:
Alexandra Maniati, Director of Innovation & Cybersecurity, a.maniati@ebf.eu
Julian Schmücker, Senior Policy Adviser Digital Innovation, j.schmucker@ebf.eu
Dimos Karalis, Policy Adviser – Innovation & Cybersecurity, d.karalis@ebf.eu
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]]>European Commission’s proposal for a revised Directive on Security of Network and Information Systems (NIS2): EBF key messages
Publication date: 17 June 2021
Key messages
Ensuring high levels of cybersecurity across the EU is one of the biggest challenges, affecting citizens, customers, and businesses alike. Cyber threats are by nature cross-sectoral and may arise from and expand to any field of economic activity, with possibly immense repercussions. Therefore, adopting cybersecurity measures that target entities across sectors is crucial and the European Commission’s review of the Directive on Security of Network and Information Systems (NIS2) is a welcomed initiative.
Some of the sectors within the scope of NIS2 are also covered by sector-specific rules, as is the case of the financial sector where, in addition to a number of existing policies, the Commission has also published a proposal for a Regulation on digital operational resilience for the financial sector (DORA). The Regulation includes provisions on ICT risk management, cyber incident reporting, digital operational resilience testing, information-sharing arrangements and managing of ICT third-party risk. Given the extent of the DORA provisions, the EBF welcomes its function as lex specialis to NIS2, thereby providing legal certainty to banks in terms of obligations.
However, some elements of the current NIS2 text require further clarification, so as to ensure clear and smooth implementation:
- DORA’s function as lex specialis to NIS2 should be stated clearly and unconditionally.
- The requirement to notify competent authorities and recipients of services on cyber threats creates should be carefully re-assessed as it is bound to create more risks than those it intends to address.
- The revised text should aim at enabling the establishment of meaningful and voluntary cyber threat information-sharing arrangements among trusted circles.
EBF contact:
Dimos Karalis, Policy Adviser Innovation & Cybersecurity, d.karalis@ebf.eu
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]]>FROM THE EUROPEAN BANKING FEDERATION:
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European Money Mule Action leads to 1 803 arrests
Investigation reveals money mules were laundering profits from online fraud schemes such as business email compromise and Forex scams.
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Today saw the conclusion of the anti-money mule operation EMMA 7, an international action coordinated by Europol in cooperation with 27 countries, Eurojust, INTERPOL, the European Banking Federation (EBF) and the FinTech FinCrime Exchange. The operation resulted in 1 803 arrests and the identification of over 18 000 money mules. It also revealed that money mules were being used to launder money for a wide array of online scams such as sim-swapping, man in the middle attacks, e-commerce fraud and phishing.
Over roughly two and a half months of operations, EMMA 7 saw law enforcement, financial institutions and the private sector, including Western Union, Microsoft and Fourthline, cooperate in a concerted effort against money laundering in Europe, Asia, North America, Colombia and Australia. As well as targeting the laundering of profits through money muling networks, investigators also sought intelligence on the sources of these illicit profits, shedding more light on the size and nature of the criminal economies that money mules serve.
Results from 15 September – 30 November
- 18 351 money mules identified;
- 324 recruiters/herders identified;
- 1 803 arrested individuals;
- 2 503 investigations initiated;
- 7 000 fraudulent transactions reported;
- €67.5 million prevented losses.
Collaborating in the fight on money laundering
This was the seventh iteration of the European Money Mule Action, or ‘EMMA’, which was established in 2016 on the initiative of Europol, Eurojust and the European Banking Federation. It is the largest international operation of its kind, built around the idea that public-private information sharing is key to fighting complex modern crimes. Around 400 banks and financial institutions supported the action, reporting 7000 fraudulent transactions and preventing a total loss estimated at nearly €70 million.
EMMA 7 works based on private sector actors reporting incidences of suspicious or possibly illegal financial conduct to national law enforcement authorities. Similarly, law enforcement can ask financial actors to look into its own intelligence on potential money mules. With these inputs, law enforcement can paint a picture of laundering networks and then decide in each case how to react to the possible money muling activity.
EMMA provides a means for all these actors to confer, sharing intelligence that will help identify possible money mules and potentially lead to arrests. Europol supports each stage of the preparation by connecting the law enforcement partners and private sector partners and facilitating information exchange between them. In the operational phase, Europol provided analytical support that connected the transnational cases with the money muling networks behind them.
Most of the investigations under EMMA 7 focused on the international dimension of muling. Money muling operations see mules not only transferring money between countries, but also travelling between countries themselves in order to set up bank accounts overseas. Criminals can then use these accounts later on in support of the money laundering process.
Awareness as important as action
The complexity of money muling operations, and law enforcement’s response to them, reflect how muling networks are created. Unlike many financial crimes, money mules can be recruited unknowingly into the criminal operation. The organised crime groups do this by preying on groups such as students, immigrants, and those in economic distress, offering easy money through legitimate-looking job adverts and social media posts.
Ignorance is not an excuse when it comes to the law and money muling; they are breaking the law by laundering the illicit proceeds of crime. For this reason, Europol coordinated the ‘#DontBeAMule’ awareness campaign with all participant countries, law enforcement and the EBF on behalf of the European banks, as a means to prevent more innocent bystanders being exploited by criminals and putting themselves at risk.
Eurojust participated in the operation via its dedicated liaison officer and stands ready to support cross-border investigations and judicial cooperation at the request of the national authorities involved.
EMMA is under the EMPACT Sub Priority Cybercrime NCPF (Non Cash means of Payment Fraud), and is led by the Netherlands.
Participating countries: Australia, Austria, Belgium, Bulgaria, Colombia, Czech Republic, Estonia, Finland, Greece, Germany, Hong Kong, Hungary, Ireland, Italy, Moldova, Netherlands, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Sweden, Switzerland, Spain, United Kingdom, United States.
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In 2010 the European Union set up a four-year Policy Cycle to ensure greater continuity in the fight against serious international and organised crime. In 2017 the Council of the EU decided to continue the EU Policy Cycle for the 2018 – 2021 period. It aims to tackle the most significant threats posed by organised and serious international crime to the EU. This is achieved by improving and strengthening cooperation between the relevant services of EU Member States, institutions and agencies, as well as non-EU countries and organisations, including the private sector where relevant. Cybercrime is one of the priorities for the Policy Cycle.
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