Online credit card fraud is on the rise, accounting for 78% of total card fraud in Australia
According to the report, card transaction activity increased by more than 10 percent last year, to $ 714.5 billion, of which $ 534 million, or 0.074 percent.
He estimates that by 2020, only a fifth of transactions will involve entering card details into internet browsers, amid the growth of mobile wallets and sophisticated shopping carts. times in 2016, accounting for 52 percent of all payments.
Suzanne Steele, managing director of credit reporting agency Experian Australia, said it was more important than ever for the industry to shift “from a culture of remediation to a culture of prevention”.
Over the past year, Experian Australia has filtered over 3,300 fraud events around the world every second.
“To date, the strategies employed by many Australian banks and credit providers to combat fraud have emphasized a reactive approach, identifying and blocking weak points in the system that allow fraudsters to sneak through the system. net.”
She said that a purely reactive approach was no longer sufficient as banks and credit providers prepare for the long-awaited implementation of the National Payments Platform over the next six months, which will see the interbank transactions settle in seconds instead of days. , removing “the luxury of 24 hours or more to stop fraudulent transactions”.
“Fraud prevention approaches must be holistic, using detection and prevention technologies that allow businesses to be agile and responsive to emerging fraud threats, without affecting the actual customer experience,” Ms. Steele said. .
According to the Australian Payments Network, the recent increase in card fraud is due to large-scale identity theft and data breaches, through malware or phishing attacks, while The widespread adoption of chip technology has made it more difficult for criminals to operate face to face. .
The report recommended that merchants collect payments through a fully hosted payment gateway provider, avoid shipping resalable merchandise to non-residential addresses, such as PO boxes and hotel rooms, and not provide refunds. than the card used to pay for the goods.
Consumers can protect their online transactions by updating computer security software, reporting suspicious transactions to their card provider, and only providing their card details on secure websites, which feature the “padlock” symbol. Locked “.