It’s a big and constantly evolving issue. Globally card fraud over the next decade will cost the industry more than $US400 billion in losses, according to industry research firm Nilson Report.
"Because the threat is constantly evolving, financial institutions must do the same to try and stay one step ahead of new fraud techniques.”
More than 2.1 million Australians (11 per cent) experienced one or more types of personal fraud in 2020-21, according to the Australian Bureau of Statistics. This included card fraud, identity theft and different types of scams.
The increase was driven mainly by a rise in card fraud, the most common fraud type experienced by Australians in 2020-21, the ABS found.
The good news is the banking industry is continually developing new security measures to help deal with card fraud. These measures have meant overall losses in the card payment industry have remained relatively steady as issuers, banks and merchants have introduced new systems.
The industry has developed frameworks to encourage secure technologies such as tokenisation, strong customer authentication, real-time monitoring and machine learning.
For example card skimming and counterfeit fraud was a big problem in previous decades. To deal with this issue, card providers introduced chip technology which helped prevent fraudsters from using card skimming to make fraudulent transactions.
At ANZ we are constantly searching for more ways to keep our customers’ data safe and secure.
One such advanced security feature we launched recently with our partners at Visa is a dynamic card verification value (CVV). The new feature will provide ANZ Plus customers with an extra layer of fraud protection for online and card not present payments.
Customers are used to providing the static three-digit number on the back of a payment card when paying for goods or services online. The CVV helps counter what is referred to as “card not present” fraud.
Card not present fraud mainly affects online transactions and occurs when valid card details are stolen and used to make purchases or other payments when the card number, expiry and CVV are keyed in. It accounted for about 87 per cent of all card fraud in 2019, according to industry body the Australian Payments Network.