Credit card fraud transactions on the rise
18 December 2007
Credit card fraud is on the rise according to figures released by the Australian Payment Clearing Association (APCA).
The Australian payment industry's principal self-regulatory body issued its third listing of Payment Fraud statistics which showed that the fraud rate rose to 16.7 fraudulent transactions per 100,000 transactions for the 12 months to (June 2007), compared with 14.8 to June 2006.
The report also showed that the incidence of fraud on debit (that is, EFTPOS and ATM) cards increased from 1.7 to 2.1 fraudulent transactions per 100,000 transactions.
Overall fraud had dropped from 6.8 cents in every $1000 (June 2006) to 5.9 cents in every $1000 (June 2007).
Key findings of the report include:
- Cheque fraud declined from 2.4 cents to 1.4 cents in every $1000.
- Debit (that is, EFTPOS and ATM) card fraud declined from 8.2 cents to 7 cents in every $1000.
- Credit and charge card fraud dropped slightly from 38.9 cents to 38.6 cents in every $1000.
The total cost of fraud to June 07 was $128.5 million.
APCA's Chief Executive Officer, Chris Hamilton said in a press release that is was encouraging to see the year-to-year comparison in overall fraud rates drop but he also stressed that we should continue to maintain and improve our efforts to prevent fraud..
"Despite Australia's relatively good performance in fraud prevention, there is a need for continued vigilance by financial institutions and their customers," he said.
Comprehensive data is available at APCA's website
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