Subject: Credit Card Fraud Complete Item: Four-fold increase in credit card fraud
Credit card fraud in Australia has been growing four times faster than the number of card transaction Aussies make and there’s been a warning to businesses to strengthen their defences against the fraudsters. More than 50 percent of the growth in fraudulent transactions- to the tune of $120 million last year – was the result of the use of counterfeit cars or skimming.
Information security firm, CQR Consulting, also says that Card-Not-Present fraud (CNP) – where neither the card not the cardholder is present at the time of the transaction, through a mail, telephone, fax or internet order – and the use of counterfeit cards or skimming, were the two main ways of fraud faced by card users.
In 2007 the cost of fraud due to counterfeiting/skimming cards was $32,825,883, rising last year by over 51 per cent to $49,781,436.
The total cost of Card-Not-Present fraud in 2007 was $53,794,096, but it was also up – by 33 percent – last year to a total value of $71,578,908.
Darrall says the growth in card fraud rates is leading to increased efforts by banks and card brands to reduce their exposure to the fraud.
