Why is instant payment fraud increasing so rapidly?
The primary driver behind the rise in fraud is the inherent speed of instant credit transfers, which complete transactions in less than 10 seconds. This rapid execution leads to almost immediate settlement, making it extremely difficult for financial institutions or victims to intercept or recover funds once a fraudulent transfer has been initiated. According to the Bank of Greece, the lack of a 'value date'—meaning funds are credited immediately rather than on a future date—removes the critical window of time usually used to halt suspicious activity.
In 2025, the scale of this issue became evident through a massive spike in fraudulent activity. The number of credit transfer fraud incidents jumped from 5,032 in 2024 to 9,830 in 2025. The total monetary value lost also climbed significantly, rising from €12 million in 2024 to €17 million in 2025. This represents a 41% increase in the total value of fraudulent transfers, even as the average transaction value across all transfers saw a slight decrease from €1,770 to €1,670.
The mechanics of credit transfer theft
The Bank of Greece identifies two distinct methodologies used by criminals to exploit instant payment systems. The first, and most prevalent, involves the unauthorized issuance of payment orders. This method accounts for 64% of all credit transfer fraud cases. In these instances, attackers gain access to sensitive payment credentials through deceptive means, allowing them to bypass security and command the transfer of funds directly.
The second method, accounting for the remaining 36% of cases, relies on social engineering or the manipulation of the payer. In these scenarios, the victim is deceived into voluntarily authorizing a payment to a third party, under the false impression that the recipient is a legitimate beneficiary. This highlights a critical vulnerability: even with secure technical protocols, human error and psychological manipulation remain primary vectors for financial crime.
How are card payment fraud trends shifting in 2026?
While credit transfer fraud is rising, the first half of 2026 has seen a notable decrease in fraud related to payment cards. Data shows that the number of fraudulent card transactions fell by 23% compared to the same period in 2025. Furthermore, the total value of these fraudulent transactions decreased by 14%, dropping from €12.3 million to €10.6 million. This decline occurs despite an overall increase in the volume and value of card-based commerce.
The landscape of card usage is also evolving. In June 2026, the number of debit cards stood at 19.2 million, a slight 2% decrease, while credit cards rose by 3% to 3.5 million. A particularly significant trend is the 40% surge in prepaid cards compared to December 2025, reaching 4.1 million units. This growth is largely attributed to public sector changes, where certain financial subsidies are now being distributed via specialized prepaid cards.
Vulnerabilities in different transaction channels
Despite the overall decline in card fraud, the method of transaction significantly impacts the level of risk. The Bank of Greece reports that "card-not-present" (CNP) transactions—those conducted remotely without the physical card—remain the most targeted channel. In the first half of 2026, CNP transactions accounted for 130,898 fraudulent incidents, dwarfing the 21,180 incidents at POS terminals and the 2,108 incidents at ATMs.
Most of these remote fraudulent activities occur via online platforms. However, there is a positive trend in security effectiveness for other channels; fraudulent transactions at ATMs decreased by 24%, and CNP fraud incidents fell by 26% compared to the first half of 2025. This suggests that while remote theft remains the dominant threat, targeted security improvements are beginning to yield results in physical and automated environments.
What is the role of the IRIS system in instant payments?
The IRIS instant payment service is witnessing rapid adoption, serving as a cornerstone for the expansion of real-time money transfers. In the first half of 2026, IRIS transactions reached 79.5 million, representing a 54% increase from the 51.6 million transactions recorded in the second half of 2025. This growth underscores the increasing reliance on the system for seamless, immediate financial movement.
The majority of this activity is driven by Peer-to-Peer (P2P) transfers. During the first half of 2026, P2P transactions reached 69 million, up from 43 million in the previous six-month period. The total value of these P2P transfers also rose from €2.6 billion to €3.8 billion. This surge is accompanied by an expanding user base, with the number of IRIS P2P users growing by 8% to reach 4.6 million people.
Is there a safer alternative for digital payments?
Direct debits continue to stand out as the most secure method of payment within the current financial ecosystem. According to the Bank of Greece, direct debit transactions increased by 11% in 2025, totaling 39 million transactions. While the total value of these transactions saw a slight decrease of 3% to €6.5 billion, the security profile remains unmatched.
The most significant advantage of direct debits is their resistance to fraud. The Bank of Greece reported that no fraud incidents were recorded by payment service providers involving direct debits throughout 2025. This stability makes it a preferred method for recurring or high-reliability payments, especially when contrasted with the high-velocity risks associated with instant credit transfers and remote card transactions.
Frequently asked questions
Why is it hard to get money back after an instant payment fraud?
Instant payments are processed and settled in less than 10 seconds. Because the funds are credited to the recipient's account immediately without a traditional value date, there is no time window for banks to intercept the transaction or reverse the transfer once the fraudster has initiated it.
What are the two main ways criminals commit credit transfer fraud?
The first method involves criminals using stolen credentials to issue unauthorized payment orders, accounting for 64% of cases. The second method involves social engineering, where the victim is tricked into mistakenly authorizing a payment to a fraudulent account, accounting for 36% of incidents.
Are credit cards more or less risky than debit cards for fraud?
While the report focuses on transaction types rather than a direct comparison of card security, it highlights that "card-not-present" transactions—often involving credit or debit cards online—are the highest risk. However, overall card fraud is currently trending downward in terms of both frequency and total value.
How has the IRIS service changed payment habits?
IRIS has significantly boosted the volume of instant money transfers, particularly for Peer-to-Peer (P2P) transactions. With a 54% increase in transaction volume in early 2026, it has become a primary tool for individuals to move money quickly and conveniently between personal accounts.
What is the safest way to make a digital payment?
Direct debits are identified as the safest method. Unlike instant transfers that are prone to rapid, unrecoverable theft, direct debits showed zero reported fraud incidents in 2025, making them a highly reliable option for managing electronic payments.
Key takeaways
- Instant credit transfer fraud rose by 95% in 2025, totaling 9,830 incidents.
- The total value of credit transfer fraud reached €17 million in 2025.
- Card-not-present (CNP) transactions remain the highest risk for card fraud.
- Direct debits recorded zero fraud incidents throughout the year 2025.
- IRIS P2P transactions grew to 69 million in the first half of 2026.
Conclusion
The financial landscape is currently defined by a tension between the convenience of instant liquidity and the heightened risks of digital crime. While the rapid adoption of the IRIS system and the growth of prepaid cards demonstrate a move toward a more efficient economy, the 95% surge in credit transfer fraud serves as a critical warning. The speed that makes instant payments attractive also makes them a prime target for sophisticated attackers. As transaction volumes continue to climb, the focus for both regulators and consumers must shift toward enhancing security protocols and improving fraud detection to match the velocity of modern money.
