Credit Cards to have Stronger Anti-Fraud Measures
21 January 2009
Credit cards have seen a massive rise in fraud with over $233 million in the last financial year according to the Australian Payments Clearing Association.
This shows a rise from $157 million in 2006-07 and is attributed to increased fraud across borders, and huge rises in card-not-present (CNP) fraud involving online, phone or mail transactions.
Australian credit cards total fraud equaled $132 million with $73 million attributed to criminals using the cards in other countries.
The Australian Payments Clearing Association concluded that over $63 million was lost to CNP scams with counterfeit cards making up for $42 million in losses, all within Australia and on locally issued cards used overseas.
The past financial year saw fraud on losses on cards originally issued overseas reach above $100 million with criminals using foreign cards within Australia claiming almost $101 million. This is a rise from $66 million in the 2006-2007 financial year.
Debit card fraud involving the use of a PIN accounted for the bulk of these losses, at $11.4 million.
As a result of these increases in credit cards fraud, over the coming years credit cards will begin to implement chip-based authentication, with the intention of eradicating counterfeiting and skimming.
Experts have estimated that over the next three years the majority of credit cards will have a chip to protect consumers further from credit card fraud.
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