Debit card fraud reaps big profits

10/12/2009

The number and total value of frauds committed on debit cards was up considerably during the 2009 financial year, largely driven by a few well-publicised cases of ATM and Eftpos skimming rackets.

The total amount of money defrauded from debit card holders increased from $14.6 million in 2008 to $19.1 million, the Australian Payments Clearing Association reported yesterday in an annual review of payments fraud.

There were more than 48,000 cases of fraud on debit cards during 2008/09, up from less than 38,000 last year.

The chief executive of APCA, Chris Hamilton, says the new Eftpos company will have to address security issues concerning debit cards.

“An Eftpos transaction with a chip card is not a full chip transaction. Yes, you insert the chip card but the transaction is not processed as a full chip transaction, so the new Eftpos business will have to decide what is the development path for that to start happening.”

Source: The Sheet

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