Cyprus has been ranked among the 15 European countries most affected by digital payment fraud, despite recording one of the lowest overall loss totals and fraud case counts, according to new analysis of European Banking Authority data by BrokerChooser.

In the first half of 2023, Cyprus reported 9,164 cases of payment fraud, resulting in total financial losses of €2.8 million.

While the absolute figures remain relatively modest compared to larger economies, the average loss per incident stood at €311, placing Cyprus 14th among the 27 countries studied.

This level of impact means it would take the combined net earnings of around 413 full-time Cypriot workers to offset the total financial damage.

Although the majority of fraud cases in Cyprus involved card issuers, with 7,822 recorded incidents, credit transfers caused the greatest financial damage.

Losses from fraudulent credit transfers amounted to €1.3 million, representing more than 45 per cent of all payment fraud losses on the island.

Meanwhile, across Europe, digital payment fraud has surged by 43 per cent in 2024, driven by increasingly sophisticated tactics including the use of artificial intelligence.

BrokerChooser’s report showed that Europe lost €4.3 billion to payment fraud in 2022, with an additional €2 billion lost in just the first six months of 2023.

The report added that Nordic countries reported the highest average losses per incident.

Specifically, Finland topped the list with an average loss of €593, followed by Iceland (€545) and Norway (€488).

In contrast, southern European countries such as Portugal, Spain, and Italy experienced the lowest average losses, with Portugal recording just €64 per case.

Commenting on the broader findings, Adam Nasli from BrokerChooser said that “with payment fraud inflicting heavy losses across Europe, the need for financial literacy and vigilance has never been greater”.

He added that “even smaller economies aren’t immune to outsized impacts” and emphasised that “as digital adoption accelerates, so does the need for consumers to stay informed and proactive.”

What is more, BrokerChooser’s study quantified losses not only by monetary value but also by calculating how many full-time workers’ annual earnings would be needed to cover the financial damage in each country.

In Cyprus, although the number of fraud cases remains limited, the relatively high loss per incident underscores the importance of stronger safeguards in digital transactions.

The report also highlighted that card issuer fraud continues to account for the bulk of incidents across Europe.

At the same time, credit transfers represent the highest monetary losses, making up nearly 64 per cent of the total €1.2 billion lost in the first half of 2023 alone.