Title: Australian Payment Fraud Soarsto $495 Million in 2021: A New Record

Snapshot of 2021 Payments Data

• Card transactions in Australia hit an all-time high of $865 billion, a 6.2% increase from the previous year.
• Online retail spending grew by 8.2% to reach $53 billion.
• The fraud rate remained relatively stable at 57.3 cents per $1,000 spent, compared to 58.6 cents in 2020.

Combatting Fraud and Scams

• Industry’s CNP Fraud Mitigation Framework helped decrease online card fraud.
• The rate of scams continues to rise, with 11.1 million Australians reporting exposure to a scam in 2021.

CNP Fraud and Mitigation Strategies

• Online card fraud, which accounts for 91% of all card fraud, increased by 7.6% to $452 million.
• Financial institutions invest in technologies such as real-time monitoring, machine learning, tokenization, and Strong Customer Authentication (SCA).

Types of Card Fraud in Australia

• Counterfeit/skimming fraud decreased by over 50% to a record low of $5.5 million.
• Lost/stolen card fraud rose by 9.3% to $28.9 million.
• Fraudulent applications dropped by 65% to $0.9 million.

Consumer and Merchant Protection

• Consumers advised to be cautious when providing card details to unknown contacts.
• Installing systems to protect devices against viruses and malicious software is essential.
• Merchants encouraged to invest in fraud detection solutions and comply with PCI DSS standards.
• Tokenization, authentication tools like SCA, and EMV chip technology are effective strategies to mitigate fraud risks.

Conclusion

• The Australian payments industry continues to address fraud and scams, implementing new technologies and strategies.
• While the total value of card fraud increased in 2021, the fraud rate remained stable, and many types of fraud declined.
• Collaboration and innovation will be essential to ensuring the security and success of the Australian payments ecosystem.