CNP Fraud Accounts for 94% of all Card Fraud Growth in Australia
June 18, 2015
Payment card fraud is on the rise in Australia and nearly all of the increase is in card-not-present channels, according to a new report from the Australian Payments Clearing Association (APCA). In Australia Payments Fraud – Details and Data , the APCA found fraud on Australian payment cards increased from 47 cents to 58 cents on every $1,000 spent between 2009 and 2014. Of that increase, card-not-present fraud accounted for 94 percent.
Last year, card-not-present fraud perpetrated on Australian cards rose 42 percent to nearly $300 million, from $210 million in 2013. By value, CNP fraud accounted for 77 percent of all payment card fraud in the country in 2014, up from 52 percent in 2009.
APCA, an association of payments industry stakeholders that promotes best practices in Australia, said the CNP fraud situation in the country mirrors global trends. The growth in CNP fraud is being driven by increased online spending and the continued adoption of chip-and-PIN technology, which is driving fraudulent transactions from physical locations to e-commerce environments. In fact, media in Australia had been reporting that using chip cards at brick-and-mortar locations could be putting cardholders at greater risk. APCA CEO Chris Hamilton said the new report put that notion to rest.
“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,” Hamilton said. “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.”