Credit Card Fraud Costs Merchants $89M
DATA LOSS—AUSTRALIAAugust 13, 2010
The growth in the ability to use credit cards for "card-not-present" payment for goods and services via the Internet, phone or mail resulted in merchants losing about $89 million last year due to fraud, News.com.au reports. Australian Payments Clearing Association data indicates that such types of fraud occur once in about 3,000 transactions, compared with one in 6,000 in 2006, explained Phil Kernick of CQR Consulting. Businesses that comply with the Payment Card Industry Data Security Standard can better protect themselves from such fraud, the report states. For those that do comply, Kernick said, "the likelihood of losing credit card information is very small."