A recent policy brief by the European Centre for International Political Economy (ECIPE) has expressed concerns regarding the European Parliament's proposed amendments to the Payment Services Regulation (PSR). These changes aim to extend fraud liability to electronic communications service providers (ECSPs), including telecom operators and online platforms.

The European Parliament's stance significantly deviates from the initial proposal by the European Commission, which does not assign liability to ECSPs and online platforms. This study is particularly relevant as EU Member States are yet to reach a consensus on a unified PSR position.

According to ECIPE, imposing shared liability across various sectors may diminish the motivation for payment service providers and consumers to actively engage in fraud prevention. The study also points out that ECSPs and platforms face limitations under existing regulations such as the General Data Protection Regulation (GDPR) and Digital Services Act (DSA), which restrict proactive monitoring efforts.

To address these issues, ECIPE suggests adopting a more balanced approach. This includes fostering cross-sector collaboration between banks, ECSPs, and online platforms; educating consumers about fraud risks; and encouraging industry-led anti-fraud standards with incentives for innovation.