In August 2018, the Australian Payments Network (APN) released a report on Payment Card Fraud examining the 2017 card payment fraud statistics reported by Australia's financial institutions and major card schemes. The report found that the value of fraud transactions grew in line with the overall value of card transactions in Australia in 2017, with an increase of 5% to AUD 561.4 million.
"Card-present" fraud such as counterfeit or "skimming" fraud fell 47.8% last year, which is likely partially due to improved chip technology making it more difficult to copy information from cards at ATMs. However, "card-not-present" or "CNP" fraud has risen, and now accounts for 84.5% of all fraud on Australian cards. CNP fraud occurs when valid card details are stolen and used to make fraudulent transactions, predominantly occurring online.
The APN in consultation with industry participants are currently developing a new industry framework to tackle online fraud with plans for implementation in late 2018. This initiative is in addition to the counter-fraud efforts employed by individual financial institutions such as improved cardholder authentication, reduced exposure of card data, and real-time fraud identification.
To assist in the prevention of card fraud, the APN suggests payment service providers should consider:
* investing in tokenisation (replacing sensitive account holder information with a 'unique digital identifier')
* using tools to authenticate customers (i.e., geo-location, biometrics or a PIN/password)
* taking steps to secure data against possible breaches (card details are often among the data stolen during a breach)
* regularly engaging in discussion regarding best practice with other payment service providers and industry groups
For further information please see here for the APN report.