Banks 'must improve fraud prevention efforts'

Mozo

Tuesday 13 April 2010

Australia’s banks must step up their efforts to stay ahead of sophisticated debit and credit card fraud schemes, it has been suggested.

Card fraud protection content

Jim Tate, chief product officer at Westpac, told a Senate inquiry that card skimming via EFTPOS payment terminals in shops is likely to get worse, the Australian reported.

Card-skimming occurs when criminals replace older model EFTPOS terminals with compromised versions that can be used to drain personal bank accounts.

Committee senator Nick Xenophon called on the major banks, which provide EFTPOS machines to businesses, to invest in updated fraud prevention programs.

"Banks have to do everything possible to ensure that small businesses and customers aren’t being ripped off," he added.

The news, which may interest Aussies who decide to compare debit cards and credit cards in search of the best safety features, comes after a card-skimming scam in New South Wales earlier this year claimed $50 million from personal bank accounts.

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