News from the Wire

Fraudio reveals network-level fraud insights at Money 20/20 Europe

Wednesday, June 10, 2026 — 16:39:36 (UTC)

FRAUDIO REVEALS NETWORK-LEVEL FRAUD INSIGHTS AT MONEY 20/20 EUROPE AS PAYMENT FRAUD RISES 25%

Fraudio, the AI-powered transaction risk platform, revealed new fraud analysis at Money20/20 Europe, showing that payment fraud has risen by around 25%, with attacks increasingly concentrated around shared infrastructure and coordinated payment networks.

Based on analysis of Fraudio’s proprietary transaction risk data, the findings show that observed fraud activity is increasingly linked to network-level signals, such as IPs connected to large numbers of cards, activity across merchants and submerchants, and repeated patterns across payment flows.

Key findings from Fraudio’s analysis include:

A directional increase in observed fraud rates across Fraudio’s analysed dataset between 2024 and 2025 to 2026.

More than 90% of observed fraud events were linked to shared infrastructure, such as IPs connected to a large number of cards.

Transactions routed via submerchants showed a higher observed fraud rate than direct merchant transactions in Fraudio’s analysed dataset.

Transactions where 3DS was used and succeeded still showed fraud activity, underlining the importance of layered fraud prevention.

Fraudio’s false-positive proxy increased across the analysed period, suggesting that legitimate customers may increasingly be caught by overly blunt fraud controls.

The findings, officially unveiled during Money20/20 Europe in Amsterdam, point to a shift away from isolated fraudulent transactions and towards more coordinated attack patterns across cards, merchants, geographies and payment flows.

According to Fraudio, some of the strongest signals in the analysed data came from shared infrastructure. A large share of observed fraud was linked to IPs connected to high numbers of cards, reinforcing the importance of detecting repeated entities and connected activity across the wider payment ecosystem.

Speaking on the latest data, João Moura, CEO and Co-founder of Fraudio, commented, “Fraud is often treated as a transaction-level problem, but our proprietary data shows something more structural is happening. The strongest patterns are not isolated bad payments, they are shared infrastructure, repeated entities and coordinated routes across the payment ecosystem.”

As security teams reflect on the first half of 2026, Fraudio’s data points to the limits of transaction-by-transaction screening. When fraud happens at network level, controls that assess each payment in isolation can struggle to identify coordinated attacks quickly enough. Payment companies need to understand the wider context around each transaction, not simply the transaction itself.

Fraudio’s analysis also found that layered commerce models can carry elevated risk. In the analysed dataset, transactions routed via submerchants showed a higher observed fraud rate than direct merchant transactions. This suggests that as payment journeys become more complex, fraud teams need greater visibility across merchants, entities and payment flows, not just individual transactions.

The company says this reflects the growing complexity of digital commerce, where platforms, marketplaces, PSPs and payment facilitators often sit between the customer, merchant and risk decision. While submerchant models are not inherently unsafe, Fraudio says they can create visibility gaps when fraud controls are unable to connect activity across merchants, entities and payment journeys.

The data also highlights the limits of relying on authentication alone. Fraudio observed fraud activity both where 3DS was not used and where 3DS was used and succeeded, demonstrating the continued importance of layered fraud prevention, with authentication supported by behavioural, contextual and network-level intelligence.

The findings point to a growing challenge around customer friction. Fraudio’s false-positive proxy increased across the analysed period, suggesting that legitimate customers may increasingly be caught by overly blunt fraud controls. The analysis also found higher weighted false-positive rates in eCommerce and MOTO, after removing noisy buckets and low-volume artefacts.

Gadi Erel, VP Product at Fraudio, commented, “The danger is that businesses respond to fraud pressure by simply becoming more aggressive with declines. That may reduce some fraud, but it also risks blocking good customers and damaging approval rates. The real opportunity is precision by stopping coordinated fraud earlier, while protecting legitimate customers from unnecessary friction.”

Fraudio says the findings point to a new phase of payment risk management, where issuers, acquirers, PSPs, platforms and merchants need to move beyond static rules and isolated transaction monitoring. Instead, the company argues that fraud strategies should be measured by their ability to detect shared infrastructure, reduce false positives, protect approval rates and prevent disputes before they enter the chargeback process.

ENDS

Notes to editors

Fraudio’s analysis found:

Average fraud rates increased from 0.036% in 2024 to 0.045% across 2025–2026, a relative uplift of approximately 25%. IPs tied to 25 or more cards accounted for 91.08% of fraud events.

In a node-level view, IPs connected to 25 or more cards accounted for 98.60% of observed fraud.

Transactions routed via submerchants showed a fraud rate of 0.018%, compared with 0.004% for direct merchants, representing a 4.92x difference. Transactions where 3DS was not used showed a 0.227% fraud rate, while transactions where 3DS was used and succeeded still showed 0.218%. Initial recurring payment set-up showed a 0.141% fraud rate, compared with 0.013% for subsequent recurring payments and 0.008% for one-time payments.

Fraudio’s false-positive proxy increased from 12.088% in October 2020 to 23.479% in May 2026.

Weighted false-positive rates were highest in e-commerce at 23.701% and MOTO at 15.234%, after removing noisy buckets and low-volume artefacts.

About Fraudio

Fraudio is an AI-powered transaction risk platform helping issuers, acquirers, PSPs and platforms detect and prevent fraud in real time. By combining artificial intelligence with network-level intelligence and flexible risk controls, Fraudio helps payment companies stop fraud while reducing false positives and protecting legitimate customer approvals.

Notice to readers: These are archived articles. Contact information, links and other details may be out of date. We regret any inconvenience.

Source: Company press release.

Categories: Reports and research