Industry given 6 months to combat online card fraud

 credit card fraudThe Payments System Board has put banks on notice; they must act effectively to reverse the ever-rising incidence of credit card and debit card fraud in Australia. Six months is the timeline spelled out by the PSB on Friday.

In an unusually comprehensive “update” from its meeting that day, the PSB “welcomed the willingness of the participants to collaborate” on the issue of “rising card-not-present fraud”.

Card-not-present fraud “accounted for 78 per cent of all fraud on Australian cards in 2016,” the Australian Payments Network said in its latest half-year report of payments fraud in the country.

CNP fraud has lifted for four years in a row. In a review on the topic in August last year, the APN reasoned that: “as chip technology continues to provide strong protection against counterfeit cards, fraud is increasingly migrating online.”

Within Australia, CNP fraud increased 28 per cent to A$176 million, up from $137 million in 2015, while offshore CNP fraud increased seven per cent to $242 million.

For its part, the PSB said it “noted that a broad range of industry participants had recently come together to begin the process of developing a coordinated strategy to tackle rising card-not-present fraud.

“Members looked forward to the strategy being finalised within the next six months and implemented soon after that.”

AusPayNet, more than a week ago, hosted “an accelerator event, with the aim of developing consensus on how Australia could combat CNP fraud, and to agree the principles and implementation approach for a framework to do so,” a posting at its website relates.

It said “this resulted in good outcomes”, including “cross-industry commitment to building a framework within three to six months.”

The PSB also stressed its interest in “the potential for further innovation in retail payments from new players and technologies,” declaring that “this will be a major focus of the Board over the period ahead.”

This is a nod in the direction of fintechs on the one hand, and the Productivity Commission on the other, which has voiced discontent over the access frameworks for the New Payments Platform.

As for this month’s launch of the NPP, the PSB stated it “was briefed on the performance of the NPP since the launch, the increasing number of users registered with PayID and the growing number and value of payments,” but shared no data on any of these metrics.

Download our Orion Financial Crimes Brochure here

Contact Luke Wilson, Group Executive Sales & Relationships to discuss your Financial Crime requirements today: 0417 287 759

Source: Banking Day 26/2/2018

Share this article:
Share on LinkedInTweet about this on Twitter