Originally published at SecurityBrief Australia
An staggering $476 million has been lost to fraud by Australian merchants over the last 12 months, thanks to the deployment of more innovative fraud methods by criminals.
A sophisticated new generation of fraudsters are no longer content with physical theft or simple card skimming. This threat manifests itself as “card not present” (CNP) fraud on eCommerce channels, where methods like identity theft, account takeover data breaches and bust-out scams are employed.
Accounting for some 78% of all payment fraud in Australia, CNP fraud has pushed the country’s fraud rate to record levels.
The good news is Australian consumers are not liable for fraud losses and will be refunded as long as they can demonstrate they have maintained a standard of care with their confidential data.
However, CNP fraud can have a huge impact on a business, putting their profit margins and long-term reputation on the line as losses are often sheeted back to merchants in Australia – worrying the ASIC and the RBA.