Australia sees annual rise in payment fraud

16 December 2008

Payment fraud has increased in Australia but remains relatively low against global averages, according to annual figures from the Australian Payments Clearing Association (APCA).

The organization said in the 12 months to the end of June 2008, total fraud rates including checks and payment cards rose from 5.9 cents in 2007 to 7.2 cents for every A$1,000.

Debit card fraud rose from 7.1 cents to 7.4 cents in every A$1,000, while credit card fraud rates increased from 38.6 cents to 50.2 cents in every A$1,000.

The combined rate for credit and debit card fraud was 31 cents per A$1,000, below the global average of 47 cents A$1,000.

Card not present (CNP) fraud - which can cover online, phone and mail purchases - was the most common form of deception, accounting for 48 per cent of all card fraud value.

APCA chief executive officer Chris Hamilton said: "The latest figures reinforce the challenges of maintaining good security and the need for consumers to take extra care when shopping and doing business online."

He added that the roll-out of chip and pin technology in Australia would help prevent future card fraud.

According to the Reserve Bank of Australia, there are approximately 13 million credit cards on issue in the country.

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