24 May 2015

Chip technology shifts Australian fraud landscape

07 December 2010  |  12505 views  |  1 Australian Flag

The introduction of chip technology is changing card fraud patterns in the Australian payments landscape, with skimming attacks diminishing as fraudsters turn to card-not-present scams.

As seen in other jurisdictions that have introduced chip technology, skimming fraud is dropping significantly in Australia as financial institutions and merchants progressively roll out chip.

Figures released by the Australian Payments Clearing Association (Apca) show that the overall skimming fraud on Australian-issued credit, debit and charge cards dropped to $34.5 million - down 24%. Within this total, skimming fraud on cards used in Australia dropped by 38% to $12.2m million, while the overseas total slipped 13% to $22.3 million. Skimming fraud perpetrated in Australia on scheme cards issued overseas also fell, down 47% to $34.6 million.

The figures show that fraudsters are increasingly targeting payments methods that do not use chip and PIN, as CNP fraud increased by 25% to $102.6 million and now accounts for 52% of all frauds.

Apca has called for better implementation of the PCI data security standard to limit merchant breaches, and wider uptake of the 3D Secure standard implemented by international card schemes Visa and MasterCard.

Comments: (1)

Nick Collin - Collin Consulting Ltd - London | 08 December, 2010, 17:36

Just like the UK experience!  Recommended solution is to deploy Remote Chip Authentication, coupled with 3D Secure.  It seems to be working here.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related stories

15 October, 2010
09 December, 2009
02 November, 2009
07 October, 2009
26 August, 2009
24 March, 2009
15 December, 2008

Related company news

 
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Cash overtaken by non-cash payments in the...
6792 views comments | 48 tweets | 31 linkedin
UK opts out of European online payments se...
5974 views comments | 19 tweets | 15 linkedin
MasterCard launches personal payments serv...
5923 views comments | 15 tweets | 27 linkedin
US banks bid to crack down on 'card cracki...
5552 views comments | 8 tweets | 10 linkedin
Metro Bank to offer consumer loans via Zop...
4786 views comments | 29 tweets | 21 linkedin

Featured job

Basic £90-110K OTE circa £200K NO CEILING
London based with substantial travel in Scandinavia

Find your next job