AusPayNet’s Australian Payment Fraud Report 2024 shows banks are, for now, once more losing the battles against payment card fraud and scammers.
For the first time since 2017, offshore Card-Not-Present (CNP) fraud overtook domestic CNP fraud, with losses in this category increasing by 51 per cent to $362 million.
Other key findings in the report include:
? The overall payment card fraud rate is up 22 per cent (70.2 cents per $1000) in calendar year 2023 - the highest rate recorded since 2018, AusPayNet said.
? Total fraud value increased 32 per cent to $762 million. This increase outpaced the growth in the total value of card transactions, which rose by 8 per cent to $1.1 trillion.
? Card-Not-Present (CNP) fraud accounted for 90 per cent of all card fraud in Australia in 2023.
? CNP fraud grew by 33 per cent to $688 million, on total CNP spending of $320 billion, up 24 per cent on the previous year.
? The offshore CNP fraud rate was $10.93 per $1000 spent, over 10 times higher than the domestic rate of $1.06 per $1000 spent (down from $1.11 in 2022).
? Lost/stolen card fraud was up by 24% to $52 milion, returning to pre-pandemic levels.
“The nexus between fraud, scams, and cybercrime is challenging” Andy White, CEO of AusPayNet said.
The marked increase in CNP fraud losses was primarily driven by a significant rise in CNP fraud on Australian cards used at overseas merchants, the report shows.
Fraud losses in this category increased 51 per cent in 2023 to $362 million, surpassing the 23 per cent spending growth in this category over the same period ($33 billion).
Put another way, 53 per cent of CNP fraud in 2023 was perpetrated on 10 per cent of the CNP spend, “at an alarming fraud rate of $10.93 per $1,000 spent.”
In contrast, CNP fraud on Australian cards used at Australian merchants increased 17.5 per cent in 2023 to $325 million, at a lower rate than the spending growth rate of 24 per cent to $307 billion.
Rhis resulted in a 5 per cent decrease in the fraud rate for domestic CNP fraud.