MAGYAR NEMZETI BANK
an outstanding one is Project Helvetia,47 launched by the Swiss infrastructure group (SIX), the Swiss central bank (SNB) and the Bank for International Settlements (BIS). Within the framework of the project, the settlement of securities issued as crypto-assets against central bank digital currency was tested successfully. The results of the project open important prospects in the field of innovative infrastructure development even if for the time being they remain only test results: the SIX Digital Exchange (SDX) that was established by the SIX Group and deals with cryptoassets will initially perform securities transactions only against commercial bank money, i.e. the introduction of the central bank digital currency still has to be waited for. It is important, however, that the issuance and trading as crypto-asset increasingly affects the market of traditional securities as well, and in the coming years numerous projects will start, which will examine the potential inherent in the technology not only from a theoretical perspective.
4.4 MAIN DEVELOPMENTS RELATED TO FRAUD MONITORING AND PREVENTION In parallel with the rapid spread of digitalisation and the increasingly fast rise in the number of electronically initiated payment transactions it is extremely important to strengthen the defence against fraud attempts. The increasingly dynamic changes in digitalisation affect almost all areas of our lives, including payments. Nowadays almost everybody has access to the Internet and/or a smartphone. Accordingly, payment service providers are also increasingly focusing on directing their services towards digital platforms. As a result, the development of electronic payments is also accelerating. Moreover, in addition to traditional service providers, innumerable innovative actors are attempting to enter the market, which often results in the fragmentation of payments and thus in a more complex choice of services. In many cases it affects transparency as well, since in the various payment situations often various payment solutions are available for customers, which is only further exacerbated by the flooding of customers with a lot of information. They typically do not have time for processing and structuring it, and the situation is made more complicated by the lack of adequate supporting knowledge. Exploiting all this, frauds related to payments increasingly affect electronic channels. Moreover, fraudsters apply increasingly sophisticated solutions in relation to acquiring customers’ sensitive payment data and to deceiving them. Realising that, pursuant to the PSD2 and the SCAr., which supports the former, European legislators require compliance with increasingly strict provisions 47
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(e.g. application of strong customer authentication in all payment situations), and the data collection spectrum is also expanding with regard to frauds, in order to support their early detection, identification and the taking of the necessary measures.
4.4.1 Availability of more detailed fraud statistics on the basis of data reporting expanded in connection with the PSD2 On the basis of the data collection methodology renewed in connection with the PSD2, data reporting concerning frauds has been expanded in Hungary as well, providing additional information for attending to the related supervisory tasks. In view of the changes observed at international level in relation to frauds affecting payments, increasing emphasis is put on early detection, the identification of patterns and prevention. Accordingly, the ECB and the EBA renewed their data collection methodology, which was implemented by European central banks as well. In parallel with that, in respect of the data collection related to payment services, in 2020 the MNB changed over to a much more detailed, so-called dimensional structure, which can be flexibly expanded in the future, and also serves a basis for the quarterly publications and analyses related to payments. Accordingly, payment service providers’ statistical data to be reported on frauds related to individual payment methods also expanded. Within that, in connection with fraud monitoring, more detailed data regarding payment turnover and frauds not related to cards as well as regarding frauds, losses and losses written off in the card issuing and acquiring businesses were implemented. With its new content, the data reporting also helps the preparatory works of the MNB’s administrative inspections, and allows deeper analysis regarding the identification of trends concerning frauds and the taking of the necessary measures. In addition to the above, in connection with the PSD2 the data reports concerning the refusal of access to payment accounts and non-refunded payment transactions are also important to mention. Account-servicing payment service providers may only refuse access to payment accounts for the new actors of the PSD2, i.e. for third-party providers, if an unauthorised payment transaction is initiated or access in a fraudulent manner takes place. In view of the importance of the issue, during its administrative inspections the MNB puts great emphasis on examining the above, which is significantly supported by the related data reporting obligation. As for the data reporting to the MNB concerning unauthorised payment transactions it is important to mention that the events have to be examined from the aspect of the
Swiss National Bank, BIS Innovation Hub, SIX Group (2020): Project Helvetia, Settling tokenised assets in central bank money – https://www.bis. org/publ/othp35.pdf
PAYMENT SYSTEMS REPORT • JULY 2021
