Card fraud down but vigilance still urged
In the face of a 4.2 per cent boost in total card spending to $799.4 billion, overall card fraud dropped by 6.9 per cent to $527.8 million, according to the Australian Payments Network.
The data was based on the period of 12 months to 30 June. According to this data, card-not-present (CNP) fraud dropped by 5 per cent on the previous year, to $455.5 million as the industry has adopted secure technologies such as tokenisation, EMV 3-D Secure, real time monitoring and machine learning.
However, according to the AusPayNet, fraud involving CNP transactions remains by far the largest category of fraud.
eCommerce volumes have grown rapidly, and this space has attracted criminal groups as security technology makes other types of card fraud less attractive.
Fraud involving lost or stolen cards fell by 16.1 per cent to $43.0 million in 2019 and counterfeit/skimming fraud fell by 19.2 per cent to $18.6 million, the latter extending a consistent trend since chip technology was progressively rolled-out in the card system over the last decade.
Today’s data covers the period ending immediately before 1 July 2019, when the industry’s key initiative to counter online fraud, the CNP Fraud Mitigation Framework, took effect.
“Our Framework is a whole-of-industry approach that brings together stakeholders to reduce the space available for CNP fraudsters. We look forward to tracking the impact of this initiative in coming years,” AusPayNet CEO Any White said.
The CNP Fraud Mitigation Framework was a result of a collaboration with card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies.
Key elements include targets for card issuers to reduce CNP fraud, and increased use of multi-factor authentication, including biometrics, in verifying CNP transactions.
White urged both the industry and public not be complacent with payment security.