Report: CNP Fraud in Australia up 25% Year-Over-Year
Dec. 17, 2015
Card-not-present fraud in Australia accounted for 80 percent of card fraud in the 12 months ending June 30, 2015, according to a new report from the Australian Payments Clearing Association (APCA). In what it calls its “interim” report, APCA–the trade organization representing the payment industry in Australia—found CNP fraud rose more than 25 percent during the time period from $256.5 million in the year ending June 30, 2014 to $322.7 million during the following 12 months.
According to the report, the APCA attributes the rise in card-not-present fraud, and the increasing share it accounts for in overall fraud to three fundamental factors: the growing popularity of card use in card-not-present environments, the implementation of EMV and that criminals, like everyone else, are moving their lives online.
“The online space is being targeted more widely by criminals in general,” the report’s authors wrote. “Card-not-present fraud is just one manifestation of the growing threat from cybercriminals experienced by governments, businesses and individuals worldwide.”
CNP fraud has grown steadily in Australia along with e-commerce, although the market is still relatively small (around $19 billion in retail e-commerce sales expected in 2015, according to eMarketer). In addition to the raw number growing quickly, CNP fraud as a percentage of total fraud has grown significantly in the past five years, the report said. In 2009, CNP fraud accounted for 52 percent of total fraud by value. That number increased to 77 percent in 2014 and 80 percent in the interim results. Counterfeit fraud’s share has fallen from 32 percent in 2009 to just 11 percent last year.