The Dark Side Of PSD2

Fraudsters’ reaction to the EU regulation

By Doron Weitz

June 2021

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Inside this report

Europe is rolling out SCA enforcement at speed, and on the dark web, fraudsters are quick to follow. This report examines how the new EU regulation impacts fraud and fraud prevention and shares insights gained from a deep dive into the dark web. Read to discover the key MOs fraudsters use to bypass 2FA and understand the risks of over-reliance on 3DS as a fraud prevention tool. Learn about the regulatory incentives for keeping your fraud rates low, and find our recommendations for revising the TRA thresholds to address the €12bn excessive friction paradox.

Table of Contents

Into the Dark: How Fraudsters React to SCA

The Merchants’ Dilemma: Holistic Fraud Management Under PSD2

The Excessive Friction Paradox: Quantitative Analysis of the TRA Exemption


Discover fraudsters’ reaction to PSD2

Discover fraudsters’ reaction to PSD2

Understand the methods fraudsters use to bypass SCA

Recognize regulatory incentives

Recognize regulatory incentives

Adapt your fraud prevention strategy to offset the impact of PSD2

Assess your exemption strategy

Assess your exemption strategy

Learn about the low-value exemption pitfall and the excessive friction paradox