Published on Apr 25, 2016

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Card fraud topped $2.1 billion last financial year in Australia, more than doubling since 2011.2.-Credit-Card-Fraud

Approximately 96 per cent of those losses were recovered as many customers successfully disputed transactions and had fraudulent charges reimbursed.

This is done through a chargeback process, and if your business has not taken the right steps to validate a transaction you could find yourself out of pocket.

If a cardholder does not recognise or agree with a transaction, they can report it to their bank.

The bank will investigate and if it is found the merchant or business who charged the transaction cannot provide enough evidence to support the charge, the cardholder will be reimbursed and the bank can issue a chargeback to the business.

Customers can have up to 12 months to challenge a transaction. Online transactions and Mail Order/Telephone Order (MOTO) transactions are more likely to result in chargebacks.

As a business, you can protect yourself by:

  • Requesting additional customer identification to confirm the person making the transaction is the authorised cardholder.
  • Keeping good records. This includes original orders, shipping documents, receipts and customer correspondence.
  • Making sure you confirm account details so you don’t charge the wrong person.
    Avoiding duplicate processing.
  • Responding immediately to customer requests to cancel orders or questions about transactions.

More than a million targeted

The Australian Bureau of Statistics (ABS) reported just over one million Australians experienced card fraud, and an additional 600,000 fell victim to some other financial scam.

Although the number had increased overall since 2011, the ABS reported evidence which suggested people were becoming savvier at recognising scams as “the proportion of people who responded to a scam decreased from 2.9 per cent in 2010-2011 to 2.4 per cent in 2014-2015.”

You can avoid a scam by protecting your personal data. Some top tips to get smarter with your data include:

  • Shred personal documents.
  • Keep your personal details personal – don’t share them all over the internet and social media.
  • Double check all documents and emails and trust your gut. If something doesn’t seem right, it’s probably not.

For more information about protecting yourself and your business from scams and fraud, visit the ScamWatch website, or check out the video below.