In Australia, credit card fraud has increased from $461 million in 2015 to $534 million in 2017.
Make sure you’re sitting down for this next bit…
For every $1,000 spent online using a credit card, 74.7 cents was lost to fraud which is a shockingly high number by any standards.
The reason for the huge increase is being attributed to something called Card-Not-Present or CNP fraud.
This occurs when valid card details are stolen and then used to make purchases or other payments without the card, mainly online or by phone.
All this is terrifying considering we’re now using our cards more than, making more than 8.1 billion transactions a year with our handy-dandy plastic devices.
The study from Australian Payments Network credits the rise in CNP fraud to:
• fraud migrating online as chip technology provides strong protection for face-to-face fraud
• large scale data breaches, which capture sensitive card data
• identity theft, which often includes the theft of sensitive card data
What do you do if you think you’re a victim of online credit card fraud?
Speak to your bank
The Commonwealth Bank says to get in touch with your bank immediately. They should be able to put a hold on your account and also reimburse your money provided you haven’t contributed to the loss and have protected your card and PIN if there has been fraudulent activity.
Get a copy of your credit report
Check your credit reportas soon as possible. This will allow you to see if anyone has used your name or identity to run up any other debts.
Warn family and friends
Make sure you tell your friends and family, to help make sure they don’t make the same mistake.
Credit Card fraud prevention
There is a multitude of things merchants can do to reduce credit card fraud; all are listed on the Australian Payments Network website
As an individual, it’s important to look at the following when it comes to keeping your credit card safe:
Always keep your card close to your person. Make sure wallets and purses are closed firmly.
Only give your credit card number or other sensitive information on calls you initiate.
Don’t just throw your credit card documents into the bin, shred them and make sure anything with your credit number on it ends up shredded.
Only enter your credit card number on secure websites that you can be 100% sure are legitimate. If you are uncertain of anything on the internet site at all, don’t risk it.
Protect your pin by keeping your card in sight when
making payments.
Always use your hand to cover your PIN at entry at point-of-sale terminals and ATMs.
Finder.com.au also had these tips to share:
If you have to send money to anyone using your credit card, make sure you trust them.
Regularly check your bank account and credit card statements for transactions you can’t explain, and flag them with your bank immediately.
If you’re making a purchase online or taking care of some internet banking, don’t use a public computer.
Avoid software which auto-completes forms when online. This will make it easier for any internet scammers to get your details.
