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 News | August 21, 2008 |
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Online fraud up, but fraud overall remains low
THE VALUE of fraudulent transactions in Australia has remained steady at relatively low levels, but continues to rise for credit and charge cards, particularly for online, phone, mail or fax transactions.
The Australian Payments Clearing Association (APCA) said that overall there was a slight decrease in the total value of fraud from 6.3 cents per $1000 in 2006 to 6.2 cents last year
The drop was mostly made up of drops in the fraud rate for cheques and debit cards in the 12 months to 31 December 2007.
Cheque fraud fell from 1.9 cents to 0.8 cents per $1000, and fraudulent Eftpos and ATM transactions fell from 7.7 cents to 7.1 cents per $1000.
However, payment card fraud overall rose from 23.9 cents to 27.9 cents per $1000, driven by credit card and charge card transactions, particularly for card-not-present (CNP) payments.
The actual number of fraudulent transactions also rose by 35 per cent across all transaction types, except for cheques. But this equated only to a rise from 0.0071 per cent to 0.0090 per cent of total transactions being fraudulent.
Australia’s payments fraud is still relatively low when compared with international standards.
For instance, APCA said the equivalent rate in the UK for payment cards fraud is $1.18 per $1000 – four times higher than in Australia.
“Australia’s increase in CNP and cross-border fraud appears consistent with trends reported in the UK and Asia-Pacific region over the last few years,” said APCA’s CEO, Chris Hamilton.
“What the statistics are telling us is that even as today’s technology makes it possible to buy anything from anywhere, it is also making it possible for fraudsters to operate globally.”
APCA said they didn’t know exactly why Australia’s rate of payment card fraud was so low compared with the UK, but suggested one reason may be our geographic distance from countries that have relatively lax fraud controls.
Hamilton told Risk Management that APCA only made comparisons directly with the UK because the measurement of payment fraud in other jurisdictions is not readily comparable with their own figures.
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30 May 2008
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