News

Australian payments players ramp up fight against card fraud

August 24, 2018

The Australian Payments Network, also known as AusPayNet, has announced the start of an industry consultation on a new framework to accelerate the fight against online card fraud. 

The announcement coincides with the release of the latest card fraud data for 2017 showing that card-not-present fraud accounted for 85 percent of all fraud on Australian cards. This is in line with global trends and reflects the rapid growth of e-commerce and online payments, according to a press release about the new framework. 

AusPayNet CEO Dr. Leila Fourie said the success of chip technology in preventing in-person card fraud meant that criminal activity was migrating to online payment channels.

"This is the trend internationally, and the Australian industry has mobilized to ramp up the uptake of prevention measures," Fourie said in the release. "With fraud values in other areas of card payments either flat or falling, attention is now focused squarely on online fraud."

Key elements of the CNP Fraud Mitigation Framework include:

• Setting targets for card issuers to reduce CNP fraud across their card base.
• Requiring merchants who record fraud above an agreed industry benchmark to use multifactor authentication, except for exempt (low-risk) transactions.
• Boosting the use of tokenization and compliance with card-security standards.
• Encouraging use of biometrics in authenticating CNP transactions.