Australian Payment Fraud Hits Record High in 2020
New figures released by the Reserve Bank of Australia have revealed that payment fraud in Australia reached a record high in 2020, with losses totaling $467.6 million.
Card-Not-Present (CNP) Fraud on the Rise
The data shows that CNP fraud, which involves transactions made online or over the phone without the physical presence of the card, rose by 3.8% to $418.9 million, accounting for a staggering 90% of all Australian card fraud.
COVID-19 Pandemic Contributes to Increase in CNP Fraud
The increase in CNP fraud is attributed to the COVID-19 pandemic, which led to a significant shift towards online shopping and transactions. Criminals have taken advantage of this trend, using sophisticated methods to trick victims into revealing sensitive information or authorizing payments from their accounts.
Other Types of Payment Fraud Also on the Rise
In addition to CNP fraud, other types of payment fraud also rose in 2020, including:
- Counterfeit card fraud
- Lost/stolen card fraud
- Fraudulent application fraud
Scams: A Growing Concern
The report also highlighted the rise in scams, with Australians losing a staggering $851 million to scams in 2020, representing an increase of 34% on the previous year. The most common types of scams were:
- Investment scams ($328 million)
- Romance scams ($131m)
- Other types of scams
Scams Becoming Increasingly Sophisticated
The Australian Competition and Consumer Commission (ACCC) has reported that scams have become increasingly sophisticated, with criminals using social engineering tactics to trick victims into revealing sensitive information or authorizing payments from their accounts.
Industry Response: Collaboration and Security Measures
In response to the rise in payment fraud and scams, the industry is working closely with law enforcement agencies to combat these crimes. The report highlights the importance of strong security measures, such as:
- Two-factor authentication
- Encryption
to protect against fraudulent activity.
Consumer Action: Vigilance and Protection
The Reserve Bank of Australia has urged consumers to be vigilant when making online transactions and to take steps to protect themselves from fraud and scams. By staying informed and taking proactive measures, individuals can reduce their risk of falling victim to these crimes.