Digital, Innovation, Payments
FRIDA: a future framework for fraud intelligence sharing in Europe
Published on 28 April 2026
As fraud becomes increasingly sophisticated and cross-border, European payment stakeholders are exploring new ways to strengthen collective defence.
Summary
Currently under development, the FRIDA initiative led by the European Payments Council could play a key role in enabling near real-time fraud intelligence sharing across payment service providers.
From fragmented detection to collective intelligence
Fraud prevention has traditionally been managed within individual institutions across Europe. While this approach has proven effective to a certain extent, it faces growing limitations as fraud schemes become more coordinated, faster, and increasingly cross-border.
One of the initiatives currently under development is FRIDA (Fraud Information Distribution Arrangement), led by the European Payments Council (EPC). It aims to enable near real-time, cross-border fraud intelligence sharing among payment service providers (PSPs).
FRIDA could represent a shift towards a more collective approach to fraud prevention, by allowing PSPs to share alerts related to suspicious accounts across EPC payment schemes.
This transition from isolated defence to network-based intelligence is becoming increasingly important in a context where fraudsters exploit speed, fragmentation, and information asymmetry.
How FRIDA could work
At its core, the initiative aims to build a framework, as currently envisaged, based on a central platform architecture enabling PSPs, and potentially other stakeholders, to exchange alerts related to suspicious accounts.
In a possible future model, the process could follow this structure:
• A PSP identifies a suspicious account or transaction
• An alert is shared via the FRIDA central platform
• Other PSPs receive and act on this information in near real time
This hub-and-spoke model would aim to ensure scalability while maintaining flexibility for additional bilateral data exchanges where needed.
In the future, FRIDA could also expand beyond EPC schemes to incorporate broader fraud signals, further enriching the intelligence layer.
A regulatory-driven initiative
FRIDA is closely aligned with the upcoming Payment Services Regulation (PSR), which is expected to enter into force in the coming years. This regulation is set to strengthen anti-fraud measures and encourage PSPs to enhance transaction monitoring and share relevant data.
This regulatory context would support the initiative as not only a technical development, but also as part of a broader evolution of the European payments framework, contributing to enhanced consumer protection and systemic resilience.
Key building blocks under development
The EPC is currently working on several core deliverables:
• A comprehensive scheme rulebook
• Technical and operational frameworks
• A request for proposal for a central platform service provider
• Supporting documentation, including adherence requirements
At the same time, important discussions are ongoing around data governance, privacy, security, and legal clarity.
Challenges ahead
While the initiative holds significant promise, several challenges remain to be addressed:
• Ensuring data protection compliance while enabling meaningful information sharing
• Defining clear roles and responsibilities among participating PSPs
• Balancing centralisation and flexibility in the platform architecture
• Managing operational integration with existing systems
These considerations will be key to achieving both adoption and effectiveness.
Why FRIDA matters for Luxembourg
Luxembourg, through ABBL’s active participation in EPC working groups, is closely involved in the development of this initiative. This helps ensure that the Luxembourg financial centre remains aligned with emerging European standards in payments security and innovation.
For local PSPs, FRIDA could bring several potential benefits:
• Enhanced fraud detection capabilities
• Reduced financial and reputational risk
• Participation in a broader European fraud prevention ecosystem
As discussions progress, FRIDA could become an important component of the European payments landscape, supporting stronger cooperation, improved detection, and greater trust across borders.
Galina Miroshnichenko
Adviser – Payments & Digital, ABBL
Published on 28 April 2026