Online card fraud approaching half a billion dollars a year
(22 August 2018 – Australia) The Australian Payments Network has highlighted the increase in “card-not-present” fraud, which has grown at double digit annual percentage rates for the last five years as commerce has moved increasingly online, and now accounts for the vast majority of card fraud.
Online fraudulent transactions rose 14 percent to $476.3 million, making up 85 percent of all card fraud.
To stem the ballooning cost of online fraud the Australian Payments Network has launched a plan which will see card issuers set targets to reduce fraud across their networks, as well as merchants.
If the targets were not hit, merchants would be required to go to greater lengths to authenticate payments, such as sending customers a text message with a password needed to complete the transaction, as often occurs with online banking.
The plan would also encourage greater use of ‘biometric’ authentication such as finger print and facial recognition technology.
Despite the increase in online fraud, total fraud grew at a slower pace of 5 percent, and the overall rate of card fraud, which includes counterfeit cards or ‘skimming’, was little changed.
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