ABA analysis of the APCA data shows the overall rate of debit and credit card fraud has increased but cheque fraud is holding steady. In total, the rate of fraud has shown an increase from 6.3 to 7.2 cents in every $1000 since the last survey results were released.

However, this rate still compares favourably against rates recorded in the UK which are four times higher. In the UK, the payment card fraud rate is $1.18 (AUD) per $1000 and in Australia it is much lower at 31 cents per $1000.

The main findings of the APCA fraud data for the 12 months to the end of June 2008 for financial institutions² are as follows:

• Cheques – There were 392 million cheques written with a value of $1.8 trillion. The rate of fraud remains reasonably steady at 0.82 cents per $1000, compared with the previous result for 2007 which was 0.80 cents;
  
• Debit cards – There were 2.1 billion debit card transactions, with a value of $209.8 billion. The rate of fraud registered a small increase to 7.4 cents from 7.2 cents per $1000 in 2007;
  
• Credit and charge cards – There were 1.8 billion credit card transactions on Australia-issued cards, with a value of $262.5 billion. The rate of fraud has increased to 50.2 cents per $1000 from 44.7 cents over the previous period.

David Bell, Chief Executive of the ABA, said: “We have seen an increase in credit card fraud rates – particularly those transactions made online or via telephone as well as counterfeit/skimming.”

“Banks will continue to work to protect their customers. Our banks have systems to monitor transactions on a customer’s account and, if a transaction is identified as being suspicious, it will be investigated to ensure there is no breach of security. Occasionally when this happens your bank may contact you to verify a transaction.”

“The current regime protects the consumer. Account holders are not liable for losses resulting from unauthorised transactions where it is clear that the user has not contributed to the loss.”

Customers should take precautions particularly when dealing online with companies located overseas. It is important to shop at secure websites which use protective encryption technology to transfer information from your computer to the online merchant’s computer system which keeps safe confidential information such as credit card details.
It is crucial to research the merchant before placing an order overseas so that you only do business with companies you know and trust. Reliable companies should advertise their physical business address and at least one telephone number, either for customer service or for ordering products.