'No evidence' to support contactless card opt-in recommendation
The recommendation by a parliamentary committee that financial institutions be required to offer contactless payment cards on an opt-in basis is not supported by evidence, claims ANZ in a report on its BlueNotes site.The Parliamentary Joint Committee on Law Enforcement's report on finance related crime, released earlier this month, said a number of submissions argued that new technology had expanded opportunities for card fraud. The rollout of contactless payment technology was seen as a significant contributor.The committee said an opt-in function requiring customers to consent to contactless payment technology features being activated on their cards would improve security.BlueNotes managing editor Andrew Cornell said the latest data on payment card fraud from the Australian Payments Clearing Association showed an increase in fraud in the online environment (card not present fraud) but not card present fraud.APCA's figures showed that card not present fraud accounted for 94 per cent of the increase in card fraud in 2014. Its figures do not support the suggestion that contactless cards create a greater risk of fraud.Cornell said some of the committee's findings were out of date. The committee said it shared the concerns of law enforcement agencies that the rollout of new technology without consultation with law enforcement agencies had the potential to become a driver of financial crime.The committee said banks and other financial service providers should consider law enforcement issues more carefully and facilitate discussions with law enforcement about new technologies prior to rollout.Cornell said: "The submissions and work on the parliamentary report were undertaken nearly a year ago and since then there has been greater communication between the financial services industry and the police."The Australian Risk Council, made up of industry and police, now meets quarterly to discuss new technology, emerging risks and crime prevention strategies."