Card fraud rises with increased online shopping, says report

Woman sitting at a cafe stressed out because of cybercrime holding her credit card and looking at her laptop online shopping during covid

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.

Have you been shopping online during lockdown? Why not shop for the card to meet your needs? If you’re looking for a card with just the right features for you, visit Mozo’s credit card hub for comparisons and guides.

Check out some top low rate credit cards:

Low rate credit cards - last updated 25 September 2021

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 31 Oct 2021
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 12 months then 11.99% p.a.
    0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    Details
  • Great Southern Bank Low Rate Credit Card

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    Purchase rate
    Balance transfer rate
    Annual fee
    11.99% p.a.
    0% p.a. for 25 months and then 21.74% p.a.
    $49 $0 in the first year
    Details
  • Apply By 28 Oct 2021
    PayPal Rewards Card

    Enjoy 50,000 bonus points (conditions apply). Receive 55 interest free days on purchases and 0% balance transfer rate for the first 20 months.

    Purchase rate
    Balance transfer rate
    Annual fee
    20.99% p.a.
    0% p.a. for 20 months and then 20.99% p.a.
    $0
    Details
  • NAB StraightUp Card

    Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a.
    No current offer
    $120 $10/month - waived if no spend & no balance owing
    Details
  • St.George No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 12 months then 20.74% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $0
    Details
  • NAB Low Rate Card

    0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

    Purchase rate
    Balance transfer rate
    Annual fee
    12.99% p.a.
    0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
    $59 $0 in the first year
    Details
  • Mozo Expert Choice Badge
    American Express Low Rate Credit Card

    Competitive low rate with $0 Annual Fee. Get $100 back when you apply online by 27 October 2021, are approved and spend $1,000 on your new Card by 31 December 2021. T&Cs apply. New Card Members only. Customers need an annual income of $50,000 or more.

    Purchase rate
    Balance transfer rate
    Annual fee
    8.99% p.a.
    No current offer
    $0
    Details
  • Apply By 30 Nov 2021
    St.George Vertigo - Cashback Offer

    $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    Bank of Melbourne Vertigo

    0% p.a. for 30 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 30 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    BankSA Vertigo - Cashback Offer

    $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    Bank of Melbourne Vertigo - Cashback Offer

    $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    2.99% p.a. for 15 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 30 Nov 2021
    St.George Vertigo

    0% p.a. for 30 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    13.99% p.a.
    0% p.a. for 30 months and then 21.49% p.a.
    $55 $0 in the first year
    Details
  • Apply By 20 Oct 2021
    David Jones American Express Platinum Card

    Earn 70,000 Membership Reward Points or 35,000 Qantas Points when you apply online by 20 October 2021, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Available to new David Jones American Express Platinum Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    0% p.a. for 6 months then 20.74% p.a.
    No current offer
    $295
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.