Payments Fraud
CNP fraud on Australian cards is increasing, reflecting a global trend in online card fraud and in cybercrime in general.
MEDIA RELEASE
14 December 2015
Payments fraud trends show increase in card fraud over the internet
The interim payments fraud data released today by the Australian Payments Clearing Association provide a timely reminder to Australians to remain vigilant when shopping online over the busy holiday period.
Today’s figures for the 12 months to 30 June 2015 reflect the trends reported in Australian Payments Fraud – Details and Data for 2014, released by APCA in June 2015. Fraud on Australian payment cards continues to increase in the card-not-present space, reflecting a global trend both in online card fraud and in cybercrime in general.
The interim release shows that the rate of fraud on Australian payment cards increased from 53.6c to 60.3c in every $1,000 spent. Card-not-present fraud accounted for 80% of all Australian card fraud having increased from $256.5 million to $322.7 million over the 12 month period. Australians spent a total of $672.5 billion on their cards over that time.
APCA CEO Chris Hamilton said, “With the holiday season just around the corner, many of us will be doing our Christmas shopping and taking advantage of the New Year sales over the internet. Today’s figures should be a reminder that criminals are also looking for opportunities and we need to be vigilant.”
Financial institutions are taking steps to extend the authentication techniques used for online banking to the card-not-present space to reduce the risk of fraud when shopping over the internet.
“If you use your card online, it‘s vital that you take advantage of all the security features already offered by your financial institution, such as one-time passwords,” said Mr Hamilton.
Consumers can take simple steps to help protect against online card fraud including:
- registering their contact details, such as mobile phone number, with their financial institution so they can receive alerts and passwords when prompted by websites
- only providing their card details on secure websites – looking for the locked padlock
- always keeping their PC security software up-to-date and doing a full scan often
- regularly checking their statements and reporting any unusual transactions to their financial institution immediately
The interim release shows a drop in other card fraud categories:
- fraud on Lost /Stolen cards dropped from $33.1 million to $31.8 million
- Counterfeit/Skimming fraud dropped from $42.1 million to $39.2 million
“Financial institutions and law enforcement have been working together to target skimming at ATMs and in taxis and this, together with the industry’s progressive roll-out of chip-reading at ATMs, is starting to reflect in the fraud data. Cardholders can help these efforts by always protecting their PINs and treating their cards like cash,” said Mr Hamilton.
Australians are not liable for any fraudulent transactions on their payment cards and will be reimbursed as long as they have taken due care.
The interim fraud data release is available at www.apca.com.au. Comprehensive payments fraud data for 2015 will be released in mid-2016.
ENDS
Media contact: Ida Turner – Public Affairs P: (02) 9216 4817 M: 0409 716 556
For further information visit: APCA website: Get Smart About Card Fraud Online; Protect Your Pin; Safeguard Against Skimming
ACCC website: SCAMwatch
Australian Payments Clearing Association Limited ABN 12 055 136 519
Level 6, 14 Martin Place, Sydney NSW 2000 Telephone +61 2 9216 4888 Email info@apca.com.au www.apca.com.au
