Banks Urged To Improve System To Prevent Credit Card Fraud

Banks aim to improve the security of their systems in an attempt to reduce credit card fraud

Credit card fraud is a huge problem in Australia and all over the world. It seems that the problems are getting worse and the criminals more and more sophisticated with each new scheme. While there are steps that consumers can take to protect themselves, like keeping PIN numbers private and paying attention to suspect behaviour, it is really up to the banks to improve security and protect their customers.

Credit Card Fraud Schemes Easier Than You Think

The chief product officer at Westpac, Jim Tate, recently told a Senate inquiry committee that card skimming over EFTPOS terminals is probably going to get worse. Card skimming is when card terminals are affixed with or even completely replaced with devices that steal your personal information when you swipe your card. This is one of the fraud schemes that has been known to completely empty out bank accounts before you even know that you have been victimised.

The reason these kinds of fraud schemes are so successful is they steal your information and not your actual card. The true cardholder suspects nothing is amiss, they do not report their card stolen because it is safely tucked in their wallet. All the while criminals are using the information stored on it to wipe them out. A recent scheme in New South Wales stole $50 million from personal bank accounts. All before the victims even knew what was happening.

One of the committee senators, Nick Xenophon, called for the banks to work harder to prevent credit card fraud. He asked them to invest in updated fraud programs saying, “Banks have to do everything possible to ensure that small businesses and customers aren’t being ripped off.” That is a big request, considering how savvy the criminals are becoming, but one banks will surely have to fill.

If you are concerned about how these fraud schemes effect you, your business, and the economy in general you should ask your bank what they are doing to fight credit card skimming and other fraud tactics. Banks need to know that their customers are concerned with fraud and are willing to take their business to the companies that provide the best protection. Australians simply cannot let the con artists and thieves win in the battle for credit card safety. Working together with banks we can stop them from stealing even one more dollar from unsuspecting consumers.

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Comparison of our Top Credit Card Offers

		Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual Fee	Cash Advance Rate (p.a.)
Bankwest Breeze MasterCard	A low interest rate on everyday purchases with a low balance transfer offer	0% for 6 months (reverts to 10.99% )	4.99% for 9 months	$49	21.99%
Citibank Clear Platinum Card	A low interest rate offer on balance transfers and purchases	11.99%	0% for 12 months with 3% handling fee	$99	21.74%
St.George Vertigo	An introductory offer on balance transfer and a low annual fee	13.24%	0.99% for 6 months	$55	21.49%
Virgin Flyer Credit Card	Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers	20.99%	1.9% for 12 months	$50 (for first year thereafter $99)	20.99%
Westpac 55 Day Credit Card	No annul fee for the first year with a low rate on balance transfers and purchases	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0 annual fee for the first year ($30 thereafter)	21.49%