2026-05-20

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Fraud in Payments – Trends Observed in 2025

The Bank of Latvia reports that in 2025, there were 35,700 fraudulent payment transactions totaling 10.7 million euros, representing an 11% increase in volume but a 10% decrease in value compared to 2024. Credit transfers accounted for 20% of the transaction count but 77% of the value, while card payments accounted for 80% of the count and 23% of the value. The data indicates that 89% of fraudulent electronic payments were authorized using secure user authentication, demonstrating that fraudsters primarily manipulate payers rather than bypass technical security measures.

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Latvijas Banka

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20.05.2026.

Articles

Fraud continues to be one of the most discussed topics in society. With the increasing share of cashless payments, fraudsters are developing new schemes and methods to deceive residents. Since the first half of 2022, the Bank of Latvia has been compiling statistics on the number and volume of fraudulent payments in accordance with the "Rules for the Preparation and Submission of Statistical Data on Client Payments." What does the latest statistics, compiled for 2025, indicate?

Fraud Trends in Card Payments and Credit Transfers

In 2025, a total of 35.7 thousand fraudulent payments were made, totaling 10.7 million euros. Compared to 2024, the total number of fraudulent payments increased by 11%, while the total volume of fraudulent payments decreased by 10%.

Of the total number of fraudulent payments in 2025, 20% (7.1 thousand) were credit transfers, and 80% (28.6 thousand) were card payments. However, in terms of volume, it was the opposite – the majority of the volume of fraudulent payments, namely 77% (8.3 million euros), were credit transfers, and 23% (2.4 million euros) were card payments.

In 2025, credit transfers had a smaller number of fraudulent payments – an average of 19 payments per day, but a larger volume – the average volume of one fraudulent credit transfer was 1,168 euros. In contrast, fraud with card payments was more frequent – an average of 78 payments per day, but in terms of volume, the payments were smaller – the average volume of one such payment was 85 euros.

2025

Average number of payments per day

Average amount per payment, euros

Credit transfers

19

1168

Fraudulent card payments

78

85

Credit Transfers

In 2025, 7.1 thousand fraudulent credit transfers were made, totaling 8.3 million euros. Compared to 2024, the number of fraudulent credit transfers made decreased by 14%, and the volume decreased by 17%.

Of the total number of credit transfers made in 2025 (336 million), an average of 0.002% (7.1 thousand) were fraudulent.

Of all fraudulent credit transfers, 99.8% (7.1 thousand) were initiated electronically, and the volume of such transactions accounts for 96.2% (7.9 million euros) of the total amount defrauded through credit transfers; the rest of such payments were initiated in the form of paper documents.

As the compiled statistics show, in 94% (6.6 thousand) of cases of electronically initiated fraudulent credit transfers, they were made with secure user authentication, and the volume of such fraudulent transactions accounted for 99% (7.8 million euros). When such fraud occurs, the payer themselves, by authenticating the payment, legitimately transfers funds.

Such statistics clearly show that the problem is not a lack of secure authentication, but rather how fraudsters skillfully manipulate human perception and emotions, and technical security mechanisms work, but people are convinced to use them in the interests of fraudsters. Therefore, even the strongest technical security solutions will not be able to protect if human critical thinking is bypassed. Security in the digital environment is not only a question of technology development, but also of human habits and knowledge. Therefore, it is still important to check payment data, not to rush, and in case of questions or doubts, contact your bank.

In electronically initiated fraudulent credit transfers confirmed with secure user authentication, in 64% of cases, the fraudster manipulates the payer, who themselves legitimately transfer funds to an account that, in their opinion, belongs to the other party to the transaction; in 36% of such cases, the fraudster uses fake payment orders after having obtained the payer's or payee's sensitive payment data through deception.

Card Payments

In 2025, 28.6 thousand fraudulent card payments were made, totaling 2.4 million euros. Compared to 2024, the number of fraudulent card payments made increased by 20%, and their volume increased by 27%.

On average, out of the number of card payments made in 2025 (559 million), the share of fraudulent payments is 0.005% (28.6 thousand fraudulent payments).

Of all fraudulent card payments, 96% (27.3 thousand) were initiated electronically, and the volume of such transactions accounts for 94% (2.3 million euros) of the total amount defrauded through card payments; the rest of such payments were initiated non-electronically.

In electronically initiated card payments, in 90% of cases, the fraudster, after having obtained the payer's/payee's sensitive payment data through deception, issued a fake payment order; in the remaining 10% of cases, the fraudster manipulated the payer.

81% (22.1 thousand) of electronically initiated fraudulent card payments were made without secure user authentication, and the volume of such fraudulent transactions was 44% (994.7 thousand euros); of these, 53% of cases were made within the euro area and 47% of cases were made outside the euro area.

19% (5.2 thousand) of electronically initiated fraudulent card payments were made using secure user authentication, and the volume of such fraudulent transactions was 56% (1.3 million euros); of these, 57% of cases were made within the euro area and 43% of cases were made outside the euro area.

The compiled statistics indicate that, despite the decrease in the total amount of money defrauded, the number of fraudulent transactions continues to increase. The dominant fraud risk is associated with the direct involvement of the payer in confirming the transaction, as the majority (89%) of fraudulent electronically initiated payments are confirmed with secure user authentication, which confirms that technical security solutions themselves cannot prevent fraud in cases where the fraudster manipulates the payer and achieves legitimate payment confirmation.

To reduce fraud, a comprehensive approach is still needed – payment service providers must continue to improve transaction monitoring mechanisms and educate clients about fraud schemes and signs, while payers will be helped by protecting their sensitive data and timely contacting the payment service provider and/or the police in case of suspicion of fraud.

Overall, the 2025 data indicate that fraud in payments remains an active risk, the limitation of which requires both technical solutions and a high level of payer awareness and critical thinking.

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