Beware of Credit Card Fraud

Credit card holders and online shoppers, beware!

According to Nick Scott, credit card holders should be careful when using their cards to shop online. Scott is head of cyber-security of the National Australia Bank. He added that credit card fraud is on the rise as more consumers are becoming more comfortable with online shopping.

In the last year alone, credit card companies lost about $278 million from online fraud in 2011. The number is up by more than 50 percent, compared in 2010.

This means that one in every 15 Australians is scammed of their hard-earned money. This is an alarming trend because Australians are among the top credit card users in the world. According to the Reserve Bank, Aussies spend as much as $152 million worth of card transactions every month.

According to Australian Bankers Association chief executive Steven Munchenberg, consumers need to protect themselves from fraud. If fraud happens, Munchenberg says customers should be content to know that they will not be liable for the charges incurred from fraudulent transactions especially if the customer did not contribute to the loss.

Statistics indicate that more than a million fraud cases involving credit cards and credit-style cards occurred in 2011. This means that for every $1000 spent, about a dollar is lost. This is up from 2010’s statistics of 67.2 cents.

Similarly, Australian Payments Clearing Association, payment scammers may have also reaped as much $77.5 million last year.

Scott said that banks should also be one step ahead of fraudsters not only to protect their customers but also to protect their businesses.