RBA clamps down on credit card fraudsters

Australian banks and credit card providers need to do more to make sure that customers are protected when shopping on the web, the Reserve Bank of Australia’s (RBA’s) Philip Lowe has claimed.

The Age reports that his comments, made at a recent meeting of credit card company bosses in Sydney, come shortly after figures from the Australasian Consumer Fraud Taskforce showed that there has been a 50 per cent rise in fraud in the last year.

"Almost half the fraud on credit cards occurs in situations where the merchant does not physically see the card, with the fraud rate increasing by around 50 per cent over the past year," Lowe pointed out.

He went on to warn that if this trend continues, people may be put off using their credit cards and debit cards online at a time when retailers are likely to need all the business they can get.

Melbourne police have recently warned of the risks of credit card fraud after arresting five men for suspected involvement in a skimming scam that swindled people out of around $500,000.

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