Payment card fraud is spinning out of control, leaving many retailers struggling to stem the tide of fraudulent transactions. Global figures supplied by the Industry reveal that Credit Card Fraud currently costs over 5 Billion dollars.

In Australia, our share of that figure is 85 Billion dollars, and over the last 12 months, has shown a small reduction over the 2006 annual figures. While this was good news, it is too early to be reading anything into it.

Card Not Present Transactions are currently the fastest growing sector of card fraud in Australia, and is not showing any signs of slowing down. Statistically, Accommodation/Tourism Sectors are now in the Top 5 Industries affected by Credit Card fraud.
 
The significant increase in Card-not-present (CNP) transactions which includes the Internet, telephone and mail order purchases has opened up a whole new world of opportunity for the criminally minded. The speed with which the Internet has developed has outpaced the development of the necessary security measures leaving fraudsters in a new market, which has few of the traditional legal and structural defenses to prevent this 21st century crimewave.

DEALING WITH CARD NOT PRESENT TRANSACTIONS

Each year, airlines, Internet and accommodation providers conduct $200 billion in business world wide through “card-not-present” transactions with customers they never see. The Internet, in particular, offers new opportunities for retailers to sell goods and services. But electronic commerce also brings new kinds of payment card fraud. Fraud is a particular concern for mail order, telephone order, and Internet businesses, since transactions are card-not-present. Businesses can minimize the occurrence of fraudulent transactions through a number of safeguards

Unfortunately credit card fraud is a fact-of-life for all Merchants who accept credit card payments as part of their business operation. With the increasing transition to online merchandising via the Internet, online credit card fraud is a serious issue. A business requires a sound CARD ACCEPTANCE system if you want to avoid getting 'ripped-off', being subject to bank 'charge-backs' and/or constantly arranging refunds for fraudulent transactions.

Webcodes Pty Ltd are specialists in Card Not Present Transaction training, and can assist in giving your staff the knowledge in how to combat and address the issues surrounding this form of fraud.

Call us on 1300 308 747 for more details.