EBA Flags Fraud, Debt & De-risking as Top EU Consumer Threats

The European Banking Authority (EBA) has published its ninth biennial Consumer Trends Report 2024/25, spotlighting three critical areas of concern for consumers in the European Union: payment fraud, growing indebtedness, and the effects of de-risking practices.

Drawing on insights from national authorities across all 27 EU Member States, consumer and industry associations, ombudsmen, and for the first time its Retail Risk Indicators, the EBA’s report highlights the evolving threats to consumer financial wellbeing and access across the EU.

Payment fraud remains the most significant consumer risk

Payment fraud continues to be the most pressing issue facing consumers. The report underscores the alarming rise of sophisticated scams, particularly social engineering frauds, where victims are manipulated into initiating unauthorised payments. Despite the widespread rollout of strong customer authentication under EU law, fraudsters have adapted their methods, exploiting human behaviour to bypass technical safeguards.

This finding reflects growing concerns about the resilience of the payments ecosystem and the need for ongoing investment in consumer education and real-time fraud prevention tools.

Indebtedness driven by BNPL & poor credit practices

Indebtedness ranks as the second most important issue reported. The rapid proliferation of Buy Now, Pay Later (BNPL) schemes and other short-term, easily accessible credit options has raised alarm bells, especially when paired with weak creditworthiness assessments and inadequate pre-contractual disclosures by lenders.

The report warns that the current trajectory of consumer credit availability—without sufficient safeguards—may entrench financial vulnerability, particularly among younger and lower-income groups.

De-risking disproportionately affects vulnerable consumers

De-risking has emerged as a growing challenge, affecting consumers’ access to basic financial services. The EBA notes a rise in cases where individuals are either denied access to payment accounts or have their existing accounts closed. The practice disproportionately affects vulnerable groups, including migrants, refugees, the homeless, cross-border workers, and those with poor financial histories.

This trend not only impedes financial inclusion but also risks marginalising already at-risk populations, undermining one of the EU’s core economic and social principles.

Next steps for the EBA

The EBA will evaluate potential regulatory and supervisory actions in 2025/26 to address the identified risks. This could include guidance to national regulators, improved consumer protection standards, or targeted interventions aimed at financial institutions.

This latest report reaffirms the EBA’s role under Article 9(1) of its founding Regulation, which mandates the Authority to promote transparency, simplicity and fairness in consumer financial markets by monitoring and reporting on emerging trends.

As the financial services landscape continues to evolve, the EBA’s findings offer a timely reminder that consumer protection must remain a central pillar of the EU’s regulatory agenda.

Read the press release here.