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PAYMENTS SYSTEM FRAUD STATISTICS FROM
AUSTRALIAN PAYMENTS CLEARING ASSOCIATION
Sydney, 25 May, 2007: Banks have extensive security systems in place and work around the clock to protect customers from fraud.
The ABA welcomed today’s publication of the second issue of the Australian Payments Clearing Association’s (APCA)1 fraud data. Today’s data shows a small decrease from the first issue of data but it’s too early to make any assessment on trends.
David Bell, Chief Executive of the ABA, said: “It’s important to understand that if fraud occurs, bank customers are protected from loss. If a bank discovers, or a customer reports, an unauthorised transaction on an account, the bank will conduct an investigation and if it uncovers fraud, then the bank will refund the loss. Customers are expected to keep their PIN and Internet banking passwords confidential. Internet banking customers also need to ensure that their computer has up-to-date anti-virus and firewall software.”
The data shows that the incident rate of fraud is very low for the Australian financial institutions relative to the billions of transactions that occur through the payments system every year. Fraud rates are also low in dollar terms compared to the United Kingdom.
Mr Bell said: “This low rate can be attributed to the safeguards which banks use to protect their customers’ accounts. Banks have implemented rigorous security processes to ensure that customer information and accounts are protected. Banks have systems in place to constantly monitor transactions and take action to protect accounts, sometimes even before a customer notices there may be an issue.”
Total fraud in dollar value terms for financial institutions has come down slightly from APCA’s first report (12 months to 30 June 2006) from 6.8 cents to 6.3 cents in every $1000.
The main findings of the APCA Fraud Data Collection in the 12 months to the end of December 2006 for financial institutions are as follows:
- Cheques –There were 448 million cheques written, with a value of $1.7 trillion. In dollar value terms, the rate of fraud fell from 2.4 cents to 1.9 cents in every $1000, since the last release of data.
- Debit cards – There were 1.8 billion debit card transactions, with a value of $186 billion. In dollar value terms, the rate of fraud fell from 8.2 cents to 7.7 cents in every $1000.
- Credit and charge cards – There were 1.6 billion credit card transactions on Australian-issued cards, with a value of $230.7 billion. In dollar value terms, the rate of fraud fell from 38.9 cents to 36.9 cents in every $1000.
It is important to note that the APCA data relates to financial institutions which include banks, building societies and credit unions. Data for banks has not been provided separately.
Tips to reduce fraud
There are positive steps a customer can take to minimise the risk of fraud occurring such as:
- store your cheque book in a safe place where no-one can steal it;
- never let your credit card out of sight when making a payment;
- ensure your letterbox at home is secure so identity thieves cannot steal your mail;
- install anti-virus and firewall software on your computer to protect your personal information.
More information on security and fraud prevention can be found on the ABA and member banks’ websites.
For further information:
Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
1See APCA website for fraud statistics: www.apca.com.au |
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