Cyber crooks ring up a fortune in fraud
As online sales rise, thieves are robbing consumers of half a billion dollars a year in soaring card fraud, writes Tim McIntyre
CONSUMERS are being urged to closely monitor credit and debit card activity, due to a huge recent spike in payment fraud.
A Finder.com.au analysis of data from the Australian Payments Network revealed there were 2.7 million fraudulent transactions in Australia in 2015-16 – nearly double the 1.4 million three years earlier.
The cost to consumers of this 93 per cent increase in fraudulent activity has soared from $291 million in 2013 to $531 million in 2016.
Payment fraud involves credit card, debit card and cheque fraud, according to Finder.com.au spokeswoman Bessie Hassan.
“Payment fraud in Australia is a serious issue,” Ms Hassan said. “About 7300 transactions per day are now fraudulent, up from 3800 a day in 2013.
An increase in shopping activity – say, at end-of-year sales or Christmas shopping time – can make it easier for scammers to ply their trade unnoticed.
“Offenders typically target shoppers when there is an increase in activity, so be extra vigilant with your financial details during sales,” Ms Hassan said.
One of the main drivers of payment fraud was the cardnot-present (CNP) category, according to the Australian Payments Network CEO Leila Fourie. CNP fraud involves card details being stolen and then used to make payments without the card – for online purchases, for example.
“The increase in card fraud is driven by rising CNP fraud, mainly occurring online,” Dr Fourie said. “Online accounts for 77 per cent of all fraud on Australian cards. Fraud is moving online because that’s how we’re shopping.”
CNP fraud more than doubled in the past three years, costing $402 million (up from $199 million in 2013), and now accounts for 81 per cent of all Australian payment fraud.