New data shows sharp decline in card fraud in 2019 as industry fraud prevention measures bed down

MEDIA RELEASE

14 August 2020

New data shows sharp decline in card fraud in 2019 as industry fraud prevention measures bed down

Data released today by the payments industry self-regulatory body Australian Payments Network (AusPayNet) revealed a 19.5% decline in card fraud in 2019, the biggest decline since fraud data was first published.

The overall decline in all card fraud, from $576m to $464m, came as total card spending rose 3.9% to a record $819b in 2019.

The fraud rate dipped from 73 cents to 57 cents for every $1000 spent on cards, a level not seen since 2014 and below that of comparable countries internationally.

Consumers are not liable for fraud on their cards and will be reimbursed as long as they take due care.

Card-not-present (CNP) fraud, mainly affecting online transactions, declined 18% to $403m in 2019. This decline coincided in part with the introduction in July 2019 of the CNP Fraud Mitigation Framework, a key industry-wide initiative to counter CNP fraud.

CNP fraud occurs when valid card details are stolen and used to make purchases or other payments without the card being present, usually online. It has grown steadily in recent years in line with the growth in e-commerce, dropping in 2019 but still accounting for 87% of all card fraud.

Under the CNP Fraud Mitigation Framework merchants who exceed fraud threshold targets are required to tighten their customer authentication. The framework encourages uptake of secure technologies such as tokenisation, strong customer authentication, real-time monitoring and machine learning.

AusPayNet’s data also shows sharp declines in other types of card fraud, with fraud on Lost and Stolen cards down 37% and Counterfeit/Skimming fraud down 14.3%.

AusPayNet CEO Andy White said the decline in card fraud and especially CNP fraud was encouraging and showed industry prevention initiatives were bearing fruit.

“It is early days but based on the 2019 data, the impact of the CNP fraud framework is starting to show,” Mr White said.

“The early experience reinforces that a whole of industry approach is required to reduce fraud.

“Just as chip technology has shut down the space for skimming and counterfeit fraud, we have reason to be optimistic that we have turned the corner on online card fraud. However, we need to remain vigilant as e-commerce volumes increase during the COVID 19 pandemic. Moreover, criminals will be looking for new opportunities through scams,” he said.

The AusPayNet fraud report includes a spotlight on payment scams, to increase awareness about this growing type of criminal activity.

The report cites ACCC figures showing that the losses from payment scams reported to the ACCC increased by 34% to $143m in 2019 and losses reported to all entities reached $634m.

“We know from experience that as one area of payments fraud become harder, criminal groups turn their attention to other areas and we may be seeing that now with payment scams,” Mr White said.

“Payments participants and consumers alike all have a role to play in being vigilant against fraud attempts and these are highlighted in today’s report,” he said.

Steps that consumers can take to prevent payments fraud include:

• Only providing card details on secure and trusted websites; look for the locked padlock icon and be wary of offers that look to good to be true
• Treating unsolicited emails and text messages from people they don’t know with suspicion; don’t click on the link provided and don’t be tricked into divulging confidential data such as passwords
• Regularly checking statements and reporting any unusual transactions to their financial institution immediately
• Registering for, and using, their financial institution’s online fraud prevention solutions, whenever prompted
• Doing checks to make sure the online business is legitimate
• Always keeping PC security software up-to-date and doing a full scan often

The Australian Payment Fraud report and data tables are available on the AusPayNet website.

Contactless card PIN limits to increase temporarily to help reduce the risk of COVID-19 transmission

MEDIA RELEASE

03 April 2020 

Contactless card PIN limits to increase temporarily to help reduce the risk of COVID-19 transmission.

Australian Payments Network (AusPayNet), the self-regulatory body for the payments industry, confirmed today that the payment industry will be increasing the PIN limit for contactless card payments from $100 to $200 to reduce the need for physical contact with the payment terminal.

From next week, consumers will begin to see an increasing number of retailers accepting contactless card payments without a PIN up to the new $200 limit. Given the sheer numbers of cards, payment terminals and organisations involved, the new limit will be progressively introduced across certain cards and at certain retailers, with major supermarkets expected to be among the first. When paying for purchases, customers should be guided by following the PIN pad prompts.

The new $200 limit is expected to apply for a three-month period and will be extended if required. Similar increases have been implemented or are under consideration in other countries around the world in response to COVID-19.

AusPayNet CEO Andy White said “The increased limit is a pragmatic and important response to a changing environment. Consumers are tending to buy more, less often. The new $200 contactless limit will mean fewer consumers need to touch the payment terminal.”

The Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon Jane Hume welcomed the move: “I thank AusPayNet, financial institutions, card schemes and retailers for being responsive and stepping up in these extraordinary times”, Assistant Minister Hume said. “Raising the contactless limit is a sensible and practical measure to slow the spread of coronavirus. It will help Australians stay safe and confident when shopping for essentials” she added.

“Contactless transactions are highly secure. However consistent with long standing advice, consumers are encouraged to look after their cards like cash to protect against theft,” Mr White added.

More information on the increased limit is available here.

 ENDS

Latest figures show card fraud down

MEDIA RELEASE

18 December 2019 

Latest figures show card fraud down but shoppers urged not to be complacent over Xmas

The payments industry self-regulatory body Australian Payments Network (AusPayNet) today urged Christmas shoppers and retailers against complacency as the latest industry data shows a decline in card fraud.

Data for the 12 months to 30 June 2019 (FY19) showed that in the face of a 4.2% boost in total card spending to $799.4 billion, overall card fraud dropped by 6.9% to $527.8 million.

The drop continues the trend of declining card fraud rates identified in the data for 2018 released in August 2019.

According to the FY19 data, card-not-present (CNP) fraud dropped by 5.0% on the previous FY to $455.5 million as the industry has adopted secure technologies such as tokenisation, EMV 3-D Secure, real time monitoring and machine learning.

CNP fraud occurs when valid card details are stolen and used to make purchases or other payments without the card, typically online, and in FY19 accounted for 86.3% of all fraud on Australian cards.

Australians are not liable for fraud on their cards and will be reimbursed as long as they take due care.

Fraud involving lost or stolen cards fell by 16.1% to $43.0 million in FY19 and counterfeit / skimming fraud fell by 19.2% to $18.6 million, the latter extending a consistent trend since chip technology was progressively rolled-out in the card system over the last decade.

AusPayNet CEO Andy White said that while the reduction in fraud was encouraging, there was no room for shoppers to be complacent as the peak Christmas retail season heated up.

“Fraud involving CNP transactions remains by far the largest category of fraud. eCommerce volumes have grown rapidly, and this space has attracted criminal groups as security technology makes other types of card fraud less attractive,” Mr White said.

Today’s data covers the period ending immediately before 1 July 2019, when the industry’s key initiative to counter online fraud, the CNP Fraud Mitigation Framework, took effect.

“Our Framework is a whole-of-industry approach that brings together stakeholders to reduce the space available for CNP fraudsters. We look forward to tracking the impact of this initiative in coming years,” Mr White said.

The CNP Fraud Mitigation Framework is the result of extensive collaboration across the e-commerce community including card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies. Key elements include targets for card issuers to reduce CNP fraud, and increased use of multi-factor authentication, including biometrics, in verifying CNP transactions.

“But that’s no reason to be complacent – fraud protection needs to happen at every level and it’s important that online shoppers also take steps over this busy Christmas period,” Mr White said.

“Only provide your card details on secure and trusted websites. Look for the locked padlock icon and be wary of offers that look to good to be true - fraudsters count on shoppers being less careful during busy periods,” he said.

“Malware and phishing attacks are becoming increasingly sophisticated, so treat unsolicited emails and text messages from people you don’t know with suspicion. Don’t click on the link provided and don’t be tricked into divulging confidential data such as your password.”

Other steps online shoppers can take include:

• Regularly checking statements and reporting any unusual transactions to their financial institution immediately
• Registering for, and using their financial institution’s online fraud prevention solutions, whenever prompted
• Doing checks to make sure the business is legitimate
• Always keeping PC security software up-to-date and doing a full scan often

The latest fraud data is available on the AusPayNet website.

New Guidelines for Accessibility in PIN Entry on Touchscreen Terminals

MEDIA RELEASE

3 December 2019 

In a world first, AusPayNet takes steps to improve accessibility of touchscreen payments for Australians living with disability

Coinciding with International Day of People with Disability, Australian Payments Network (AusPayNet), the self-regulatory body for Australian payments, today released Guidelines for Accessibility in PIN Entry on Touchscreen Terminals, designed to make it easier for people living with vision and/or motor impairments to make transactions on point-of-sale (POS) touchscreens.

The guidelines are the first in the world to address access to POS touchscreen technology for people living with disability and are a key step in efforts to ensure innovations in payments technology are accessible to the widest population.

In developing the guidelines, AusPayNet consulted extensively with more than 250 stakeholders, comprising people living with vision and/or motor impairments, representative bodies for the disability community, their networks and their supporters. The consultation process involved workshops, one-on-one interviews and an online survey.

“The ability to enter PINs independently on touchscreen-only POS devices, without compromising personal security, can be challenging for some people living with disability,” AusPayNet CEO, Andy White, said.

“Our guidelines are a big step forward in helping overcome these challenges. It is our hope that the principles underpinning the guidelines quickly become the norm in the design and procurement of touchscreen terminals used in Australia,” Mr White said.

The Guidelines include five key principles for people involved in the design or procurement of touchscreen technology on payment devices:

• Embed accessibility into payment projects
• Make equity and inclusion fundamental
• Overlay security and privacy as critical factors
• Consider the end-to-end user experience
• Work to increase accessibility capability and awareness

“The industry wants to ensure that the payments system is as accessible and inclusive as it can possibly be. These guidelines mark the start of collaborative work on enhancing accessibility and inclusion in payments,” Mr White said.

“We urge everyone involved in designing or buying touchscreen technologies for payments to keep the new principles top of mind.

“We’re grateful to the many stakeholders who helped us better understand the impact of the barriers and worked closely with us on how to overcome them,” Mr White said.

Incorporated into the guidelines are Supplementary Accessibility Design Considerations, and supporting material providing more detailed information on the barriers faced by the more than four million Australians living with some form of disability.

The Guidelines for Accessibility in PIN Entry on Touchscreen Terminals can be viewed here.

 ENDS

Peak advocacy groups and organisations that contributed to development of the guidelines:

• Able Australia
• Australian Human Rights Commission
• Australian Network on Disability
• Blind Citizens Australia
• Centre for Inclusive Design
• Cerebral Palsy Alliance
• Deafblind Australia
• Digital Gap Initiative
• Guide Dogs Australia
• Macular Disease Foundation
• People with Disability Australia
• Public Interest Advocacy Centre
• Royal Society for the Blind
• TCC Strategic Consulting
• Vision Australia

Payments industry gears up for major annual event

MEDIA RELEASE

26 November 2019 

Payments industry gears up for major annual event

Payments as the key to delivering the best customer outcomes is the theme of the 2019 Australian Payments Network Summit, the premier annual event for the payments industry.

Convened by Australian Payments Network (AusPayNet), the self-regulatory body for Australian payments, the 2019 Summit in Sydney on 10 December will feature discussion and debate on subjects ranging from cryptocurrencies and security to privacy, artificial intelligence and payments innovation.

Reserve Bank of Australia (RBA) Governor Philip Lowe will once again lead off summit proceedings with the keynote address.

The 2019 event will for the first time feature a Big Debate, with RBA Assistant Governor Michelle Bullock joining academics and technologists to consider whether Australia is ready for a digital currency like Facebook’s Libra. The Debate will be moderated by prominent economist Warren Hogan.

In another highlight, the Hon Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, and Robert Milliner, Chairman of the Australian Payments Council, will discuss key topics around technology and innovation and how they can lead to positive customer outcomes.

AusPayNet CEO, Andy White, said the Summit was now an important fixture on the payments calendar.

"The Summit will bring together business leaders, industry professionals, regulators and experts across all aspects of payments – it’s a fantastic opportunity for people in the payments ecosystem to exchange views and ideas and debate the issues," Mr White said.

"This year’s summit has an emphasis on customer outcomes. Most digital interactions today involve a person or business getting paid, so payments is at the heart of digital transformation and innovation.

The Summit will feature a compelling array of speakers and topics exploring variations on this theme," Mr White said.

Other highlights of the Summit include:

• Separate rotating roundtable discussions examining the fast-evolving role of AI in digital payments, the emergence of "bring your own device" payment terminals, moving payments to the Cloud, Trust in the digital age, innovation and the NPP, and ISO 20022 as the common standard for all payments
• A session on the role of domestic payments innovation in a global digital landscape by payments innovation expert, John Chaplin (UK)
• Insight on the Reserve Bank’s comprehensive review of its card payments regulation commencing in 2020
• Exploration of the new breed of payment networks and the future state of payment networks in Australia.
• Updates on the successful transition to open loop payments in the state’s public transport system from Transport for NSW.
• Lessons from this year’s Black Hat and DEFCON events and implications for payments security in Australia.

The 2019 Australian Payments Network Summit will be held on Tuesday 10 December at the Four Seasons Hotel Sydney.

Full program and registration details are available on the Australian Payments Network Summit website.

 ENDS

Steps to take when shopping online over the Christmas period

MEDIA RELEASE

18 December 2018

Steps to take when shopping online over the Christmas period

The payments industry self-regulatory body Australian Payments Network (AusPayNet) today urged Christmas shoppers to continue to be alert when shopping online, as it released data showing card-not-present (CNP) fraud continues to account for the bulk of card fraud.  

Data for the 12 months to 30 June 2018 (FY18) shows that while Australians’ spending on cards was up 5.1% to $767 billion in the period, card fraud grew more slowly, increasing by 4.8% to $565 million.

The FY18 data shows counterfeit/skimming fraud continues to plummet in the face of protection offered by chip technology. This type of fraud dropped from $42.3 million to $23 million, another record low, and now accounts for only 4% of all fraud on Australian cards. 

CNP fraud was up 7.8% to $478 million and made up 85% of all fraud on Australian cards in the period, compared to 82% in FY17 (and 85% in the 2017 calendar year). 

CNP fraud occurs when valid card details are stolen and used to make purchases or other payments without the card, typically online or by phone.

AusPayNet CEO, Dr Leila Fourie said that in line with global trends, criminal elements are increasingly attracted to the opportunity presented by growth in ecommerce, especially as chip technology has reduced avenues for other types of card fraud.

“Combatting CNP fraud is now a key priority across the entire e-commerce community and we’re delighted with the strong progress made this year on a framework for mitigating CNP fraud. We expect this whole of industry approach will help reduce CNP fraud, in the same way chip technology is tackling skimming fraud,” said Dr Fourie.

Following extensive consultation in recent months, the CNP Fraud Mitigation Framework has been agreed by the e-commerce community including card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies. Key elements will include targets for card issuers to reduce CNP fraud, and increased use of multi-factor authentication, including biometrics, in verifying CNP transactions. 

Australians are not liable for any fraudulent transactions on their payment cards as long as they have taken due care. Dr Fourie said it was important that shoppers took certain steps when making online transactions, particularly during the peak holiday shopping period.

“Only provide your card details on secure and trusted websites - look for the locked padlock icon - and be wary of offers that look to good to be true. Fraudsters count on us being less careful during busy periods,” Dr Fourie said. 

“Malware and phishing attacks are becoming increasingly sophisticated, so treat unsolicited emails and text messages from people you don’t know with suspicion. Don’t click on the link provided and don’t be tricked into divulging confidential data such as your password,” she said.  

Other steps online shoppers can take include:

• Registering for, and using their financial institution’s online fraud prevention solutions, whenever prompted
• Doing checks to make sure the business is legitimate  
• Always keeping PC security software up-to-date and doing a full scan often
• Regularly checking statements and reporting any unusual transactions to their financial institution immediately

The FY18 data also showed that lost and stolen card fraud was up from $38.5 million to $51 million, equating to 9% of all card fraud.  Dr Fourie reminded cardholders to always keep their card and PIN safe to protect against lost and stolen card fraud, including mail theft. People are advised to install a lockable mailbox, clear mail daily and, if they are away for an extended period, to have their mail held at the post office or collected by a friend.
 

 ENDS

Media contact:  Nicholas Owens, Sefiani Communications Group, on behalf of Australian Payments Network: +61 421 977 062, nowens@sefiani.com.au  

AUSTRALIAN PAYMENTS NETWORK LTD. ABN 12 055 136 519
Level 23, Tower 3, International Towers Sydney, 300 Barangaroo Avenue, Sydney, NSW 2000 | www.auspaynet.com.au | 

2018 Australian Payment Summit to tackle key issues

MEDIA RELEASE

8 November 2018

2018 Australian Payment Summit to tackle key issues

Open banking, the power of social media platforms, data security and privacy, and new regulatory reforms feature prominently in the agenda for the 2018 Australian Payments Summit - the industry’s flagship annual event – to be held in Sydney on 26-27 November.

Convened by the Australian Payments Network, the self-regulatory body for the Australian payments industry, in collaboration with Europe-based Currency Research, this year’s Summit will kick-off with a keynote address from the Governor of the Reserve Bank of Australia (RBA), Dr Philip Lowe.

Following the success of the inaugural one-day Summit in 2017, this year’s event has been expanded. Proceedings over two full days will feature an exceptional line-up of speakers and panelists from countries as diverse as Australia, Canada, Belgium, Hong Kong, the Netherlands, New Zealand, Singapore, the UK and the US.

A key highlight of this year’s summit is a regulatory panel session on Day 2 where senior representatives from the Productivity Commission, APRA and the RBA will examine the recent changes and recommendations to the regulatory frameworks designed to encourage further innovation and competition in the financial system.

The Regulatory panel is timely, coming less than three months after the publication of the Productivity Commission’s Report into Competition in the Financial System that included a number of policy recommendations for the payments sector.

AusPayNet CEO, Dr Leila Fourie, said the Summit was a rare opportunity for a diverse range of participants to discuss the latest industry developments and trends with local and international experts, regulators, and innovators.

“This year’s theme “Payments in the Platform Economy” highlights that data and digitisation are shaping a new era of super platforms. Our Summit will explore key global trends from three perspectives - consumer preferences, advances in technology and regulatory changes - and consider the implications for Australia,” Dr Fourie said.

Separate sessions on the opening day of the Summit will explore the emerging role of social media players in payments ecosystems, and the Open Banking experience in Europe with experts from Deutsche Bank and the European Banking Federation.

Panels on fintech innovation and a comparison of proprietary card systems in Australia and Canada also feature on Day 1, while the second day’s sessions include panels on emerging business models in payments and case studies in the application of blockchain in payments.

“Given the complex and diverse payments landscape, openness and collaboration are more important than ever. Our Summit brings together participants from across the payments community and offers a wealth of networking opportunities.  We invite everyone with an interest in payments to join us,” said Dr Fourie.

Other speakers and panelists over the two days include representatives from:

• WeChat Pay International
• Digital Transformation Agency (DTA)
• Interac Corp
• Payments NZ
• PayNinja
• Stone and Chalk
• Visa Inc
• Standards Australia
• eftpos Australia
• everiToken
• JP Morgan
• TransferWise
• Australian Digital Commerce Association
• Cochlear
• Volt Bank

Full program and registration details are available on the Australian Payment Summit website.

ENDS

Contact:  Nicholas Owens, Sefiani Communications Group, on behalf of Australian Payments Network: +61 421 977 062, nowens@sefiani.com.au

Or

Kurt Graham, Sefiani Communications Group, on behalf of Australian Payments Network: +61 43147 8558, kgraham@sefiani.com.au
 

AUSTRALIAN PAYMENTS NETWORK LTD. ABN 12 055 136 519
Level 23, Tower 3, International Towers Sydney, 300 Barangaroo Avenue, Sydney, NSW 2000 | www.auspaynet.com.au |