Card fraud rises with increased online shopping, says report
Online shopping jumped 65% in 2020, but Australians also lost $418.9 million to card not present (CNP) cybercrime during the period.
The Australian Payment Network’s 2021 Fraud Report revealed some fascinating insights into the impact of the pandemic on Australian spending habits, as well as credit card fraud statistics.
According to the Reserve Bank of Australia (RBA), before COVID-19, Aussie shoppers were beginning to prefer online shopping, and the pandemic then reinforced this customer preference for e-commerce and digital payments.
Restrictions and lockdowns accelerated this preexisting shift towards digital channels. And, as shopping moves online, so do payments - with digital transaction fraud not far behind.
In 2020, spending on Australian debit and credit cards dropped for the first time to a total of $801.7 billion – down 2.2% from the previous year. Contrasting this drop, data from the Australian Bureau of Statistics (ABS) shows that from the start of COVID in March 2020 to January 2021, total online sales averaged an annual increase of 65%.
Although the statistics on overall card fraud remained fairly stable in 2020 - up 0.6% to $467.6 million - fraud involving card-not-present (CNP) payment, which is primarily online, saw a notable jump of 3.8% to $418.9 million.
The pandemic restrictions brought a sharp decrease in in-person shopping, so online shopping continued to accelerate and, with that, came an increase in CNP fraud:
- Fraud on Australian cards increased by 0.6% to $467.6 million from 2019.
- Online card fraud now accounts for 90% of all Australian card fraud – up from 87% in 2019.
- During this period, the average value of fraud transactions was $116.
- Fraud accounted for 0.058% of the $801.6 billion total card spend - up 0.001% from 2019.
Over the same period, physical card-present (CP) fraud fell:
- Counterfeit/skimming fraud dropped by 34.1% to $11.1 million, reaching a record low.
- Lost and stolen card fraud dropped by 24.9% to $26.3 million, the lowest total since 2012.
Luckily, when using your physical card, the chip technology in credit and debit cards provides strong protection against counterfeiting and skimming. Similarly, contactless tap and go payments through your phone or other devices give you added security.
That said, the Australian Payment Network recommends that in order to reduce your risk of online payment fraud you should use your financial institution’s fraud solutions whenever prompted, such as push notifications on your phone each time a transaction is made on your account.
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Low rate credit cards - last updated 24 April 2024
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NAB Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Purchase rate
13.49% p.a.Balance transfer rate
0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)Annual fee
$59 $0 in the first yearCompareCompareLow Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
- Purchase rate
- 13.49% p.a.
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Annual fee
- $59 $0 in the first year
- Purchase rate
- 13.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
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- 3%, Min $3
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American Express Low Rate Credit Card
Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Must have no history of bed debt or payment default, be aged 18 years and over, and be an Australian citizen, permanent resident, or hold a long term visa.
Purchase rate
10.99% p.a.Balance transfer rate
No current offerAnnual fee
$0CompareCompareLow Rate Credit Card
Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Must have no history of bed debt or payment default, be aged 18 years and over, and be an Australian citizen, permanent resident, or hold a long term visa.
- Purchase rate
- 10.99% p.a.
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- $0
- Purchase rate
- 10.99% p.a.
- Intro purchase rate
- -
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- Cash advance
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- 55
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HSBC Low Rate Credit Card
Purchase rate
12.99% p.a.Balance transfer rate
0% p.a. for 12 months and then 25.99% p.a. (2.00% balance transfer fee)Annual fee
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- Purchase rate
- 12.99% p.a.
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- 0% p.a. for 12 months and then 25.99% p.a. (2.00% balance transfer fee)
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- $99
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- 12.99% p.a.
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- -
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- 0% p.a. for 12 months and then 25.99% p.a. (2.00% balance transfer fee)
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- 25.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
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- $99
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Australian Unity Low Rate Visa Credit Card
Purchase rate
9.90% p.a.Balance transfer rate
No current offerAnnual fee
$59CompareCompareLow Rate Visa Credit Card
- Purchase rate
- 9.90% p.a.
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- No current offer
- Annual fee
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- 9.90% p.a.
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- 18.99% p.a.
- Interest free days on purchases
- 45
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MOVE Bank Low Rate Credit Card
Purchase rate
8.99% p.a.Balance transfer rate
0% p.a. for 6 months and then 8.99% p.a.Annual fee
$59 $0 in the first yearCompareCompareLow Rate Credit Card
- Purchase rate
- 8.99% p.a.
- Balance transfer rate
- 0% p.a. for 6 months and then 8.99% p.a.
- Annual fee
- $59 $0 in the first year
- Purchase rate
- 8.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 6 months and then 8.99% p.a.
- Cash advance
- 12.99% p.a.
- Interest free days on purchases
- 45
- Intro fee
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Read our Mozo Review to learn more about the MOVE Bank Low Rate Credit Card
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