Advanced Search

Share Coverage



Category: Business, Economics and Finance / Consumer Protection / Consumer Finance / Banking

Online information theft leads to jump in credit card fraud

Thursday, 18 Aug 2016 11:40:02 | Thuy Ong

Australian cards skimmed overseas jumped by 77 per cent. (AAP: David Crosling)

Around $469 million of transactions made on cheques and cards in 2015 were fraudulent, according to a new report.

Though the number makes up only a tiny fraction of the $1.92 trillion Australians spent, the report from the Australian Payments Clearing Association said the rate of card fraud increased from 58.8 cents in 2014 to 66.8 cents per $1,000 spent, in line with global trends.

The rise was driven by a 21 per cent increase in "card not present" (CNP) fraud, a type of fraud when card details are stolen and then used to make purchases online without the card.

For Australian cards used overseas, counterfeit and skimming fraud jumped by 77 per cent to $28.1 million, while CNP fraud rose 13 per cent to $226.3 million.

"As the US progressively rolls-out chip technology, criminals are targeting those terminals that are still magnetic stripe only and Australian cards have been caught up in this fraud," said acting chief executive Andy White.

"Large scale data breaches are also contributing to the growing level of online card fraud."

On Australian cards used domestically, counterfeit and skimming dropped by 10 per cent to $22.9 million, but CNP fraud jumped 38 per cent to $136.7 million.

"Counterfeit fraud is dropping in Australia as a result of chip technology and closer cooperation between financial institutions and law enforcement," Mr White added.

"Fraud is a constant battle and as the industry's efforts prove effective in this channel, criminals are moving online."

APCA said customers can prevent fraud by keeping computer security up to date, ensure websites are secure when paying, and checking account statements regularly.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend