Australian Payments Network (AusPayNet) has revealed the incidents of card fraud has decreased by 6.9%.
The firm found that during the 12 months ending 30 June 2019, card payments increased by 4.2% to $799.4bn but fraud rates dropped to only $527.8m.
Furthermore, its data revealed card-not-present (CNP) fraud dropped by 5% to $455.5m, due to the adoption of real-time monitoring, tokenization and EMV 3-D Secure. CNP fraud can happen when valid card details are stolen and used to make purchases online without the need of the card. AusPayNet states this method accounts for 86.3% of fraud on Australian cards.
The amount of fraud caused by lost or stolen cards fell by 16.1% to $43m and that originating from counterfeit fraud dropped by 19.2% to $18.6m.
Despite there being less incidents of fraud, AusPayNet CEO Andy White said shoppers should not get complacent during the peak Christmas retail season.
Earlier in the year, the CNP Fraud Mitigation Framework took effect. The framework is the result of collaboration of players across the e-commerce space, including card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies.
Its key focus includes targets for card issuers to lower CNP fraud and increased usage of multi-factor authentication.
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