Data for the 12 months to 30 June 2018 (FY18) shows that while Australians’ spending on cards was up 5.1% to USD 767 billion in the period, card fraud grew more slowly, increasing by 4.8% to USD 565 million. The FY18 data also showed that lost and stolen card fraud was up from USD 38.5 million to USD 51 million, equating to 9% of all card fraud.
Moreover, counterfeit/skimming fraud continues to plummet in the face of protection offered by chip technology. This type of fraud dropped from USD 42.3 million to USD 23 million, another record low, and now accounts for only 4% of all fraud on Australian cards.
CNP fraud was up 7.8% to USD 478 million and made up 85% of all fraud on Australian cards in the period, compared to 82% in FY17 (and 85% in the 2017 calendar year). CNP fraud occurs when valid card details are stolen and used to make purchases or other payments without the card, typically online or by phone.
Following extensive consultation in recent months, the CNP Fraud Mitigation Framework has been agreed by the ecommerce community including card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies. Key elements will include targets for card issuers to reduce CNP fraud, and increased use of multi-factor authentication, including biometrics, in verifying CNP transactions.
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