The entire range of stakeholders has committed to developing within the next six months an industry framework for reducing online card fraud.
6 March 2018
Australian Payments Network (AusPayNet), the self-regulatory body for the payments industry, has ramped up the fight against online card fraud enlisting commitment from the entire range of stakeholders to a new, whole of industry approach at a recent Accelerator event.
The Accelerator event, held in co-operation with the Reserve Bank of Australia, brought together financial institutions, retailers, card schemes, payment gateways, payment service providers, regulators and industry bodies.
The 70 participants reached clear consensus to develop within the next six months a high-impact industry framework for reducing CNP fraud in Australia. CNP fraud1 accounts for over 80% of all fraud on Australian cards.
Dr Leila Fourie, CEO of AusPayNet said "By joining forces through a whole of industry approach we can up the ante on combatting online card fraud to achieve the same impact our roll-out of chip technology had on reducing fraud in the face-to-face environment."
Participants at the Accelerator event collaboratively developed principles to underpin the framework including:
One conclusion reached was that multi-factor authentication has a clear role to play in combatting CNP fraud. This adds layers of security by using more than one attribute to verify consumers online, for example:
The industry is mindful that multi-factor authentication can frustrate online shoppers and lead them to abandon their online carts. Industry is addressing this by limiting the use to unusual or high-risk transactions.
"We can reduce fraud without negatively impacting the online customer experience through intelligent friction that balances security and convenience," said Dr Fourie.
AusPayNet, in close consultation with the Accelerator event participants, is leading work to develop the new framework within the next six months.
Media Contact: Ida Turner - Australian Payments Network: +61 409 716 556 firstname.lastname@example.org
1.Card-not-present (CNP) fraud occurs when valid card details are stolen and then used to make purchases or other payments without the card, mainly online or by phone.
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