August 25, 2016
Card-not-present fraud on Australian payment cards surged 21 percent in 2015 compared to the year before, according to the Australian Payments Clearing Association (APCA). CNP fraud accounted for nearly 80 percent of all Australian card fraud in 2015, up from 77 percent from 2014. A stark reminder of how EMV could affect payment card fraud in the U.S. (and how the pace of EMV migration in the U.S. is affecting fraud around the world) is present in Australia’s fraud results, reported in Australian Payments Fraud – Details and Data 2016 , by APCA.
On Australian cards used domestically, where EMV has been in force since 2013, counterfeit and skimming fraud fell 10 percent to 22.9 million Australian dollars ($17.4 million) while CNP fraud increased by 38 percent to AU$136.7 million ($104.1 million). On Australian cards used overseas, however, counterfeit and skimming fraud increased by 77 percent to AU$28.1 million ($21.4 million) and CNP fraud also increased by 13 percent to AU$226.3 million ($172.3 million). The APCA points to the lag in U.S. EMV readiness as a cause of the discrepancy.
“As the US progressively rolls out chip technology, criminals are targeting those terminals that are still magstripe only and Australian cards have been caught up in this fraud,” said Andy White, acting CEO of the APCA. “Large scale data breaches are also contributing to the growing level of online card fraud. Counterfeit fraud is dropping in Australia as a result of chip technology and closer cooperation between financial institutions and law enforcement. Fraud is a constant battle and as the industry’s efforts prove effective in this channel, criminals are moving online.”