Fresh EU Directive strengthens powers against financial cyber fraud

Stolen payment credentials profits criminals over a billion every year, meaning new powers are long overdue

European Union

Specifically focussing on fraud and counterfeiting of non-cash means of payment, the language of a new European Directive has been agreed upon to strengthen rules surrounding cyber crime.

The new Directive, supplementing the EU's scaled up response to cyber crime, will enhance member states' capacity to prosecute cyber criminals.

The rules which govern payments made with bank cards, mobile payments and payments via cryptocurrencies, aim to offer the penalties for fraud of this type more uniformity to deter cyber criminals from targeting those in states with more lenient punishments for cyber crime.

The Directive is also committed to offering victims of non-cash fraud better access to advice and support to limit the consequential damage against them following a cyber attack. Provisions for the exchanging of information between states will also be improved in an effort to close cross-border cases more quickly.

"We are building a safer Europe for our citizens - offline as well as online, and today we deliver on this commitment," said Dimitris Avramopoulos, Commissioner for Home Affairs, Migration and Citizenship. "These new rules will help us crack down on those who steal from our citizens through online fraud, and ensure that our citizens are better protected."

Current EU law governing non-cash payment fraud was drafted back in 2001 so the new law is required to adequately serve today's challenges and technological developments. Since 2001, mobile payments and virtual currencies have become commonplace and such, the law must reflect the criminal demands of today's society. It's also estimated that cyber criminals may be profiting as much as 1.8 billion every year, so the need for new laws has never been greater.

"Strengthening deterrence is crucial to tackling cybercrime -- malicious cyber actors need to know that they face serious consequences," said Julian King, Commissioner for the Security Union. "Today's agreement gives member states a stronger tool to effectively fight online fraud, and provides a forceful disincentive to would-be cyber-criminals."

The Directive will have to be formally approved and adopted by the European Parliament and the Council, and once it is, member states will have up to two years to draft domestic laws which enforce the Directive's rules.

The initial proposal for the updated Directive was featured in President Jean-Claude Juncker's 2017 State of the Union Address and the news follows Monday's agreement on the language of the new EU Cybersecurity Act.

The new Act aims to better support member states with tackling cyber threats and to establish an EU framework for cyber security certification. The framework will deliver technical guidelines for procedures and standards to ensure a high level of cyber security in IoT devices, smart cards and ICT infrastructure. Once approved by the European Parliament an Council, the Act will be drafted into the EU Official Journal and take effect immediately.

Featured Resources

Security analytics for your multi-cloud deployments

IBM Security QRadar SIEM solution brief

Download now

Five reasons to move to the cloud

Join the enterprises moving their workloads to the cloud

Download now

Architecting hybrid IT and edge for digital advantage

Why business leaders should consider a hybrid IT strategy

Download now

Six reasons to accelerate remote asset monitoring with AI

How to optimise resources, increase productivity, and grow profit margins with AI

Download now

Recommended

Four tips for keeping your business secure during mass remote work
data protection

Four tips for keeping your business secure during mass remote work

19 Feb 2021
Cost of a data breach report 2020
Whitepaper

Cost of a data breach report 2020

2 Feb 2021
10 ways to protect your company from the next big data breach
data breaches

10 ways to protect your company from the next big data breach

28 Jan 2021
Misconfigured Git servers lead to Nissan data leak
hacking

Misconfigured Git servers lead to Nissan data leak

7 Jan 2021

Most Popular

Mysterious Silver Sparrow malware hits 30,000 macOS devices
malware

Mysterious Silver Sparrow malware hits 30,000 macOS devices

22 Feb 2021
IBM reportedly mulls sale of Watson Health business
mergers and acquisitions

IBM reportedly mulls sale of Watson Health business

22 Feb 2021
Hackers publish Bombardier data in wide-reaching FTA cyber attack
cyber attacks

Hackers publish Bombardier data in wide-reaching FTA cyber attack

24 Feb 2021