Perhaps driven by the tough economy, payment fraud jumped almost 30% in the first six months of 2009, with most of the increase occurring online.

Figures recently released by the Australian Payments Clearing Association (APCA) show that fraud, in the use of credit and debit cards and cheques, rose from seven cents per thousand dollars to nine cents. Most of that jump occurred in payment scenarios where the credit card was not present, such as telephone purchases or those made online, which saw the largest percentage gain of all.

Chris Hamilton, the chief executive of APCA, said it was important to break this pattern before it grew further, saying, “We encourage consumers to register for fraud protection services when shopping online and activate these additional security controls when prompted.”

Services such as Verified by Visa and MasterCard SecureCode, which verify the cardholder’s identity through passwords prior to approving an online transaction, are being encouraged by credit card companies and banks for Internet merchants and online shoppers alike.

“Participation of all parties in these scheme measures is the key to maximising fraud prevention,” said Mr. Hamilton.

Source: dynamicbusiness.com