New warning about online credit card purchases
Online shopping is undoubtedly one of the greatest innovations of the last decade or so. Convenient, easy and fun, it comes as no surprise that Aussies have fallen in love with internet purchases – in fact, last year, online sales exceeded $20 billion. But experts have warned there’s a not-so-pleasant side effect to the phenomenon – credit card fraud.
According to industry body Australian Payments Network, the number of transactions made using stolen credit card details in 2016 more than doubled since 2011, totalling $417.6 million. In fact, 78 per cent of the country’s total fraudulent purchases were made online.
The industry’s 2016 Australian Payments Fraud Data Report also found a 13 per cent increase in card skimming fraud and discovered that for every $1000 spend using credit cards, fraud accounted for 74.7 cents – up from 66.9 cents in the previous year and 43.8 cents in 2012.
Leila Fourie, CEO of Australian Payments Network, told the Sydney Morning Herald that, while Australia’s level of credit card security was better than that of the UK and US, the number of fraudulent purchases is only likely to increase as more of us turn to internet shopping.
“As Australia transitions towards even higher levels of online payments, customers and merchants need to increase security awareness,” she explained, adding that the introduction of authentication factors such as social media, biometric and geolocation data could improve customer security and lower the risk of fraud.
Have you ever been the victim of credit card fraud? What changes have you made to protect yourself in the future? Share your story with us in the comments below.