'Card-not-present' scams rob merchants of $89m
Merchants were robbed of about $89 million last year because of credit card scams committed over the internet, phone and via mail.
CQR Consulting technical assurance director Phil Kernick told the Daily Telegraph that this type of “card-not-present’’ fraud was up 20 per cent on 2008.
He also pointed to recent Australian Payments Clearing Association data which showed that the fraud now occurs in about one in every 3,000 transactions, compared with one in 6,000 in 2006.
Mr Kernick said merchants are particularly hard hit by the scam because when a consumer’s credit card is used fraudulently, they get their money back from the person who supplied the goods or services.
“From a business point of view, this card-not-present [cost] is mostly worn by the merchants,’’ he said.
The news may interest Aussies looking to compare credit cards in search of the best safety features. Last month, it was revealed that home loan fraud is also on the rise, with scammers targeting recent migrants and the elderly.
This article is brought to you by Mozo – Helping you compare credit cards