Card Fraud is on the rise globally and Australia is no exception. In the land down under, card fraud jumped 45 per cent to more than $131 million in 2007-08 with most of the growth coming from suspect online payments. Figures released by industry body the Australian Payments Clearing Association (APCA) show 361,000 fraudulent credit card transactions occurred in the year to June 30. This translates to $50.19 in fraud for every $1000 spent on credit cards, up from $38.62 in the previous year.Also, as is the case everywhere, the bulk of these were Card Not Present (CNP) transactions, "where the card holder and retailer do not meet face to face." According to APCA, almost $63.5 million in 211,000 transactions was lost in this way, the APCA figures show.
If you’re the proprietor of Android's Dungeon & Baseball Card Shop.com, how do you know it’s Rod Flanders buying all those Itchy and Scratchy comics and not Bart? The short answer is "you don't." (unless your customer is using HomeATM Personal Swiping Device)
The steep rise in fraud is a major worry for banks and credit card providers, which have been pushing for new security standards in Australia, including the recent introduction of PIN numbers for credit cards for over-the-counter transactions. (see "More on Australia's PEN or PIN Program)
Water finds the path of least resistance and apparently, fraud, like water, has the same tendencies. The crackdown on bricks and mortar fraud is believed to have driven more crime to the internet, where transactions are harder to police and fraudsters can remain anonymous. It is of utmost importance secure online transactions as online shopping becomes the norm. (see Australian eCommerce Enjoying Bonanza)
As I've stated myriad times, CNP transactions become CP (Card Present) transactions upon using HomeATM's Personal Swiping Device. HomeATM's device also securely encrypts all transactions and the HomeATM user NEVER needs to enter their PAN (personal account number) which, according to most users is a convenience aspect, (just swipe your card) but more importantly, is a security aspect as well.
In the past, part of the problem was the cost of a Personal Swiping Device. HomeATM has gotten the price to a point whereby this is a non-issue. The more secure the transaction, the lower the interchange rate. CP is more secure than CNP, thus it has lower interchange. Card Present/PIN, being even more secure, enjoys the lowest processing fees of all.
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