Online shopping can be very comfortable but most of these shoppers are falling prey to cyber criminals as the fraud rates is on the increase. High profile corporate data breaks have been taking place and a number of the country’s huge corporations from retailers like Target to major web presences such as EBay have conveyed instances of cyber theft which has caused thousands of lost consumer records as well as financial data. Cyber-attacks have not only targeted businesses’ assets and reputations but have also progressively exposed their millions of consumers to identity theft.
This has resulted in making online shoppers a bit apprehensive in indulging in shopping online for fear of cyber theft. Shopping online had become quite popular and convenient from the comfort point of view and also to get to know detailed information of the product intended to be purchased. Recent poll conducted by USA Today, indicated that around 24% of online shoppers are taking a pause on their buying habits due to the possibility of identity theft brought on through submission of their details together with credit card information provided online.
Online Fraud – Biggest Challenges for Payment History
Chris Hamilton, chief officer of APCA commented that online fraud tends to be one of the biggest challenges facing the payment history. He stated that somehow some bad guy tends to get hold of the card number with adequate information to pose to be you and purchase something from an online merchant and consumers should deal with merchants which are reputable that you know. When consumers tend to hand over their details online, by phone or through post, the card-not-present fraud rose by 42% in 2014 reaching nearly $300 million and new figures indicated by the Australian Payments and Clearing Association also found that card skimming at the ATMs is far from dead, had gone up by 17% in 2014 reaching a total of $42.1 million.
The report had outlined that the healthcare and education sectors, together with financial institutions, retailers, government bodies and computer software providers seem to be high objects for cybercrime. This issue has become so serious that the payments industry is now proposing in introducing – tokenisation, which substitutes sensitive information, for instance the use of card numbers with tokens which tend to be useless to a fraudster.
Need to Check Bank Statement Frequently
The report also indicated the $650 billion worth of transactions that were made on Australian payment cards in 2014, were fraudulent by 0.06% and the average fraud debt was $224. Steven Munchenberg, chief executive of Australian Banker’s Association, said that the customers need to check their bank statement frequently to make sure they are not the victim of fraud.
He further added that banks are equipped with sophisticated systems in place to detect fraud and if customers are innocent victims of fraud, they tend to bear the loss and not the customers. In 2014, frauds through `tap and go’ payments was comparatively stable around $33 million in lost and stolen fraud which went up by only 2%. In all these situations, fraudsters tend to use cards having contactless payment abilities in making transaction below $100 without the need of a four digit Personal Identification Number.
