The Australian Payments Network (AusPayNet) has initiated an industry-wide consultation on a new framework intended to tackle online card fraud.
The initiative comes on the heels of new card fraud data that showed card-not-present (CNP) fraud accounted for 85% of the total card fraud registered last year in the country.
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This surge in online fraud is increasing with advancements in e-commerce. While chip technology is helping to prevent in-person card fraud, the criminal activity migrates to online payment channels.
AusPayNet CEO Leila Fourie said: “This is the trend internationally, and the Australian industry has mobilised to ramp up the uptake of prevention measures.
“With fraud values in other areas of card payments either flat or falling, attention is now focussed squarely on online fraud.”
The CNP Fraud Mitigation Framework for consultation on online card fraud was the work of an alliance. This alliance contained card issuers, retailers, card schemes, payment gateways, as well as service providers, regulators, and industry bodies.
The framework provides targets for issuers to minimise CNP fraud. It requires usage of multi-factor authentication for merchants experiencing fraud more than an agreed industry benchmark.
In addition, it seeks to promote tokenisation, PCI DSS compliance and the use of biometrics in CNP transaction authentication.
Reserve Bank of Australia data showed the overall value of card transactions rose by 5% to A$748.1bn ($550.3bn) last year.
According to AusPayNet figures, card fraud of all types also rose by 5% to A$561m ($412.6m). This accounts to 0.075% of the overall card transactions.
