Media Releases

  • 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

  • Payments Fraud

    Fraud on Australian cards continues to increase in the online environment reflecting a global trend towards increasing cybercrime risks. 

    MEDIA RELEASE

    15 June 2015

    Payments fraud on Australian cards occurring mainly online

     

    A new report released today by the Australian Payments Clearing Association (APCA), the payments industry self-regulatory body, shows that fraud on Australian payment cards continues to increase in the online environment reflecting a global trend towards increasing cybercrime risks.

    The comprehensive report “Australia Payments Fraud – Details and Data” provides new payment fraud data for 2014 and a graphical overview of trends from 2009 to 2014.

    The new figures show that in 2014 fraud on Australian cards and cheques increased from 16.2 cents to 20.8 cents per $1,000 spent. Within this total: 

    • Cheque fraud remained under 1c in every $1,000.
    • Fraud on Australian payment cards increased from 46.6c to 58.8c in every $1,000 spent.

    Card-not-present fraud, occurring mainly online, by phone or by mail, accounted for 94 per cent of the increase in card fraud. The figures for Australian payment cards show that in 2014:

    • Card-not-present fraud increased by 42 per cent to $299.5 million (up from $210.4 million in 2013).
    • Two-thirds ($200.6 million) of card-not-present fraud occurred overseas (up from $124.5 million in 2013).
    • Card-not-present fraud made up 77 per cent of all payments card fraud in Australia by value (compared to 52 per cent in 2009).

    The scale of card-not-present fraud on Australian cards is in line with global trends. In 2014, card-not present fraud in the United Kingdom was up 10 per cent from last year to 331.5 million pounds. 

    Increasing card-not-present fraud on Australian cards needs to be seen in the context of:

    • Continued strong online spending by Australians: according to a study of consumer payments by the Reserve Bank of Australia, card activity in the card-not-present environment represents about 40 per cent of the total value of credit card purchases and nearly 25 per cent of debit card.
    • Migration of fraud to the online space as chip technology becomes more widespread: as industry measures to reduce payments fraud in one area take effect, criminals switch to other areas where frauds are easier to perpetrate.
    • The growing threat from cyber criminals experienced by governments, businesses and individuals worldwide: card-not-present fraud is just one manifestation of this threat.

    APCA CEO Chris Hamilton said, “As criminals continue to increase their focus on cyber space, the industry is working to respond with innovative fraud prevention measures.”

    One example of this is the industry roll out of tokenisation. This is a technique that replaces sensitive information, such as a card number, with a non-sensitive replacement value or token. If captured, the token itself cannot be used for normal card-not-present transactions and as such is of no value to criminals. 

    This extra security layer will complement the industry’s existing card-not-present fraud prevention measures including enforcing standards to protect card data, stronger cardholder authentication techniques and enhancing real-time fraud detection tools.

    The figures for 2014 also show that:

    • Counterfeit / skimming fraud increased from $36.1 million to $42.1 million, well down from its peak of $66.0 million in 2011. The recent increase is largely due to skimming attacks on ATMs over the last year.
    • Lost and stolen fraud in Australia and overseas increased slightly from $32.2 million to $33.0 million, but Australian fraud dropped 7.1% from $21.2 million to $19.7 million.

    Today’s report highlights measures underway to help further reduce counterfeit/skimming fraud and lost and stolen fraud including the roll out of chip on proprietary debit cards, moving to chip-reading at ATMs and mandatory PIN authentication on most cards from November 2014.

    “Contrary to some recent media speculation, today’s figures provide no support for the suggestion that ’tap and go’ chip cards are at greater risk of fraud. They show that the much bigger challenge is online fraud, as we all spend more time and money in cyberspace. In this rapidly evolving digital environment, we need to stay ahead of the cyber criminals”, said Mr Hamilton. 

    “Australia Payments Fraud – Details and Data” is available at www.apca.com.au

    ENDS

    Media Contact: Ida Turner, APCA Communications Tel: (02) 9216 4817 Mob: 0409 716 556 

    Tips on how to protect against online card fraud

    Tips for consumers:

    • Always keep your PC security software up-to-date and do a full scan often.

    • Only provide your card details on secure websites - look for the locked padlock.

    • Register for, and use your financial institution’s online fraud prevention solutions whenever prompted.

    • Check your account statements and report any suspicious transactions to your financial institution.

    Tips for retailers:

    • Use a fully hosted payment gateway provider to collect payments on your behalf.

    • Watch for suspicious orders. Is the order unusually large for your business? Is the customer trying

      various cards in order to make a successful payment?

    • Avoid shipping re-saleable goods to a temporary address (e.g. hotel) or to a PO box number.

    • Never take payments on behalf of any other business or person.

    • Only make refunds to the card originally used to pay for the goods.

    • Take advantage of the tools available such as online authentication methods – American Express

      SafeKey, MasterCard SecureCode and Verified by Visa. 

    Australian Payments Clearing Association Limited ABN 12 055 136 519
    Level 6, 14 Martin Place, Sydney NSW 2000 Telephone +61 2 9216 4888 Facsimile +61 2 9221 8057 www.apca.com.au

  • Towards a Digital Economy

    Australian consumers are continuing to move away from cheques and cash in favour of cards and other electronic payments. 

    MEDIA RELEASE

    6 March 2015

     

    APCA releases new report on declining cheque use as payments transition to the digital economy 

     

    The Milestones Report released today by the Australian Payments Clearing Association, the payments industry self-regulatory body, shows Australian consumers are continuing to move away from cheques and cash in favour of cards and other electronic payments.

    Today’s Report shows that cheque use in Australia dropped 13.9 per cent in 2014 to 167 million. This compares to an 8.8 per cent increase in the use of payment cards and a 7.5 per cent increase in direct entry payments (direct debits and direct credits).

    The Report also shows that consumers are using less cash. In 2014, the number of ATM cash withdrawals dropped by 4.8 per cent to 741 million and by 2.1 per cent in value to $143 billion.

    Cheque use in Australia has been declining for over a decade. A comparison between the months of December 2002 and December 2014 shows a 71 per cent drop in cheque use.

    Cheque values remain in flux suggesting that the majority of cheques still being used are for high value business transactions and for property settlement. In 2014, the value of cheques increased slightly by 0.7 per cent to $1,228 billion. This compares to a 6.2 per cent increase in the value of card payments and a 4.8 per cent increase in the value of direct entry payments.

    APCA CEO Chris Hamilton said “These figures reflect the two sides of the cheques story. First, cheques are rapidly falling out of everyday use. Second, there are some specialised contexts – like real estate – which are more resilient. These are gradually being whittled away by more efficient automated solutions – like the new PEXA service. I am confident that as these solutions come on line we will see cheque values dropping at the same rate as cheque numbers.” 

    Today’s Report also notes the work underway by the payments industry and government to ease the transition from cheques to digital payments including:

    • The introduction of electronic conveyancing for property settlement through the PEXA service.
    • The Government’s SuperStream initiative to improve the efficiency of the superannuation system.
    • The New Payments Platform, a major industry initiative to develop new infrastructure for fast, flexible data rich payments.
    • A comprehensive review by the Australian Payments Council which will look at legacy payments, innovation and technology. 

    "If you still rely on your cheque book, I encourage you to look at the alternatives that are already widely available, cheap, and reliable,” said Mr Hamilton.

    APCA releases Milestones Reports twice a year to review progress against the action plan it published in May 2012(2).

     

    ENDS 

    1. This is a re-issue of the media release issued on 5 March 2015. That release contained incorrect figures for the volume and value of direct entry payments. All other figures in that release were correct.
    2. See “The Decline of Cheques: Building a Bridge to the Digital Economy” 

    Media Contact: Ida Turner, APCA Communications Tel: (02) 9216 4817 Mob: 0409 716 556 

    Australian Payments Clearing Association Limited ABN 12 055 136 519
    Level 6, 14 Martin Place, Sydney NSW 2000 Telephone +61 2 9216 4888 Facsimile +61 2 9221 8057 www.apca.com.au 

     

     

  • Payments Fraud

    The trend of increasing card-not-present fraud reflects the strong growth in online spending by Australians.

     
     

    MEDIA RELEASE

    Sydney: 9 December 2014

    Payments fraud trends a reminder to take care when Christmas shopping online

    Today’s interim release of payments fraud data by the Australian Payments Clearing Association, the payments industry self-regulatory body, reflects the trends reported in “Australian Payments Fraud – Details and Data for 2013” in June 2014.

    Today’s data, which are for the 12 months to June 2014, are available at www.apca.com.au. Complete payments fraud data for 2014 will be available in mid-2015.

    The data show that compared to figures for the same period last year, the total rate of fraud on Australian cards and cheques increased from 16.1 cents to 18.7 cents per $1,000 spent.

    This increase is largely due to a rise in card-not present-fraud mainly occurring online. Card-not-present fraud on Australian cards increased from $199.2 million to $256.1 million. The majority of this fraud (66%) occurred overseas.

    The trend of increasing card-not-present fraud reflects the strong growth in online spending by Australians. In the four years to December 2013 online purchases increased by an estimated 140%. This compares to a 67% increase in card-not-present fraud over the same period.

    APCA CEO Chris Hamilton said, “We all know that the economy is going digital, and this year even more people will be doing their Christmas shopping online. Along with the convenience of online global shopping comes a greater need to be aware of scams and to know who you are dealing with. The rise in online cross-border card fraud is a timely reminder to take special care this holiday season.”

    Consumers can take simple steps to help stay safe when shopping online including:

    • 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.
    • Registering for and using their financial institution’s online fraud prevention solutions whenever prompted.
    • Checking account statements and reporting any suspicious transactions to their financial institution immediately.

    Australian consumers are not liable if fraudulent transactions are made on their accounts and will be reimbursed their funds as long as they have taken due care.

    Retailers can take simple measures to help protect their businesses from online fraud including by taking advantage of the tools available such as online authentication methods American Express SafeKey, MasterCard SecureCode and Verified by Visa. Further information is available in APCA’s “Get Smart About Card Fraud Online” training.

    Today’s interim release also shows that:

    • Counterfeit / skimming fraud increased from $37.9 million to $42.0 million, well down from its peak of $66.0 million in 2011. This rise is largely due to ATM skimming attacks over the period. Continued vigilance by financial institutions and by the police, alongside the industry move towards chip-reading at ATMs, is crucial to limiting this fraud. Consumers should help protect against this type of fraud by covering their hand when entering their PIN at ATMs and point-of-sale devices.
    • Lost and stolen fraud on Australian cards increased from $30.5 million to $33.1 million. This comprises a slight drop (-1.5%) to $20.5 million in the fraud occurring in Australia, but an increase (30.2%) to $12.5 million in fraud occurring overseas. Consumers are reminded to always keep their cards and PINs safe.

    APCA’s next comprehensive payments fraud report “Australian Payments Fraud – Details and Data for

    For further information visit:

    APCA website: Get Smart About Card Fraud Online; Protect Your Pin; Safeguard Against Skimming ACCC website: SCAMwatch

     

    Media contact:

    Ida Turner, APCA Communications P: (02) 9216 4817 M: 0409 716 556 

     

    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