CNP Fraud in Australia Rises with Implementation of EMV Technology

June 28, 2010

Earlier this month, the Australian Payments Clearing Association (APCA) released new statistics in the country on payment card fraud. While overall payment card fraud is stabilizing or dropping in the country with the introduction of the EMV standard in Australia, the numbers are mimicking those experienced in the U.K. as fraud on CNP transactions is beginning to rise. According to the numbers released by APCA, skimming fraud on transactions made via Australian-issued credit cards and signature debit cards dropped from $50.1million (US$47.8 million) to $37.5million (US$32.8 million) in 2009 compared to 2008. It is the first time since the industry coalition has been keeping track that this type of fraud has dropped. The report suggested that as the progressive roll-out of chip-and-PIN technology continues, so should the decrease in skimming fraud. CNP fraud, however, increased from $72.7million (US$63.6 million) to $88.6million (US$77.5 million). “The trend towards CNP fraud and away from skimming fraud is consistent with what happened in the U.K. in the transition to chip,” said Chris Hamilton, CEO of the APCA. “CNP fraud is now dropping in the UK, largely because of the growing use of industry countermeasures by merchants and consumers.”