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The Australian Payments Network (APN) has revealed online credit card fraud has almost doubled in Australia over the past six years with fraudulent transactions clocking up a massive $417.6 million in 2016.
Card skimming has also increased, up 13 percent since 2015 with ghost terminals also becoming an issue.
The figures come from the APN’s 2016 Fraud Data Report which suggested ‘card-not-present’ fraud accounted for 78 per cent of fraudulent transactions.
APN CEO Dr Leila Fourle suggested the rise in fraudulent online transactions mimicked Australians passion for shopping online, which had also increased exponentially since the last report.
“As Australia transitions towards even higher levels of online payments, customers and merchants need to increase security awareness,” Fourle said.
Whilst the increase in credit card fraud might seem like grim news, Fourle suggested Australia was doing well in comparison to its US and British counterparts.
“Australia compares favourably to the UK and US when it comes to fraud rates — and the industry is continuing its efforts to provide fraud prevention strategies that adapt to changing payments trends.”
With the National Payments Platform set to roll out in the next six months, allowing transactions to process almost instantly, the pressure is on for Australians to change their approach to safeguarding against online fraud.
The report’s current suggestions for merchants include only collecting payments through hosted gateways and making refunds to the card user only. While consumers are urged to only purchase goods from sites that feature the secured padlock symbol.