Two Sides of the Same Coin: Fraud Prevention and Accountability in Retail Payments

ABSTRACT Retail payment fraud has become a structural challenge that no longer falls solely within the remit of payment service providers. As transactions flow through increasingly fragmented digital ecosystems, the mismatch between where fraud occurs and where liability resides is becoming unsustainable. This article examines how modern fraud exploits institutional asymmetries and identifies the need for a realignment of preventive duties and financial responsibility. Drawing on international experiences—from Singapore’s cascading liability model to the UK’s reimbursement regime—it argues that effective fraud prevention requires proportional accountability across the full value chain. The analysis then turns to the evolving European regulatory framework, highlighting its ambition but also its structural and legal constraints. The article concludes with policy recommendations aimed at fostering meaningful cross-sectoral cooperation, clarifying data-sharing rules, and institutionalizing shared accountability mechanisms. In doing so, it contends that fraud prevention and accountability are not separate goals, but rather two sides of the same coin.