January 5, 2017
In the first six months of 2016, the value of fraudulent card-not-present transactions in Australia rose nearly 25 percent to AU$402 million ($292 million), accounting for 77 percent of all card fraud in that country, according to the Australian Payments Clearing Association (APCA). As it is in many places around the world that have implemented EMV technology in stores, card-not-present fraud in Australia is now the most prevalent kind of card fraud. APCA, the main association for the payments industry in Australia, said Australians spent AU$703 billion ($511 billion) on cards overall in the first half of 2016 and, of that, AU$521 million ($371 million) was fraudulent.
“Increasing CNP fraud reflects the growth in e-commerce and a global trend in online card fraud and cybercrime in general,” APCA CEO Leila Fourie said. “Financial institutions and card schemes are actively working to tackle this fraud with a wide range of initiatives.”
Technology companies worldwide also are developing authentication and antifraud technology merchants in Australia (or anywhere) can use to limit their risk when engaging in online commerce. In addition to partnering with these providers, APCA recommends merchants use a fully hosted gateway provider, watch for suspicious orders (e.g., unusually large), avoid shipping goods to a temporary address and leverage online authentication methods such as 3D Secure.