Review of the Payment Services Regulation

While there are numerous cooperation arrangements between the two sectors in several Member States, the industry is ready to further enhance and develop such cooperation to effectively fight against impersonation fraud.

We note with concern that the European Parliament deviated from the concept of enhanced cooperation and proposes a transfer of liability from the banking sector to the telecoms sector. 

This is disproportionate and it raises serious reservations insofar as it conflicts with current technical and legal constrains that govern the provision of electronic communications services according to EU legislative provisions applicable to telecommunications operators (net neutrality, secrecy of communications, prohibition of generalized Internet traffic monitoring, technical controls workable on voice networks etc.).

To be effective in fighting impersonation fraud and safeguarding consumers, the upcoming Regulation needs to strike the right balance and duly consider the roles of the various players in the chain.

It must be stressed that telecommunications operators only have oversight of a very small part of the process when impersonation fraud leads to financial fraud. In fact, they are only carriers (mere conduits) of the information to the recipient and do not have visibility or control over the contents of communications.