The Australia Payments Fraud – Details and Data report revealed fraudulent payments accounted for only 0.025 per cent of the $1.92 trillion Australians spent on cheques and cards in 2015.
The increased fraud was driven by a jump in card-not-present (CNP) fraud, in which stolen card details are used to make payments, typically online, APCA said.
The report said CNP fraud represented 79 per cent of fraudulent payments made in 2015 by value, a rise from 77 per cent in 2014.
“We’re actively working with financial institutions and card schemes, through our cards forum, to explore what an industry-wide solution to online fraud could look like, that could make a real difference in this space,” APCA acting chief executive Andy White said.
While instances of CNP fraud increased 38 per cent nationally, counterfeiting and skimming fraud saw a 10 per cent decline, which Mr White attributed to improved card technology.
“Counterfeit fraud is dropping in Australia as a result of chip technology and closer co-operation between financial institutions and law enforcement. Fraud is a constant battle and as the industry’s efforts prove effective in this channel, criminals are moving online,” he said.
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