CNP fraud continues to rise in Australia

Every six months, the Australian Payments Clearing Association (APCA) releases card fraud statistics for the preceding 12m period. They have just released the stats for FY2010 at

Lockstep monitors these figures and plots the trend data.

The graph shows card fraud in three major categories over the past four financial years.

As everyone knows, chip cards stifle skimming and counterfeiting, leaving Card Not Present as the preferred mode for organised crime. Therefore APCA expects CNP fraud to continue to rise in the short term (the current rate of CNP fraud growth is around 25% p.a.).

The jury is still out on whether PCI-DSS really helps curtail CNP fraud. It is supposed to stem the flow of stolen account details, yet there are plenty of big PCI “compliant” organsiations that continue to be breached, putting tens of millions of card numbers at a time into the hands of fraudsters.

CNP fraud is on the decline in the UK, good news which is attributed to 3D Secure. Yet merchant and consumer acceptance of 3D Secure is not getting any better, and its long term success is uncertain. There is little sign of Verified by Visa or SecureCoce in Australia so far.