Fraud Statistics
2010 Calendar Year


Fraud Perpetrated on Australian Issued Payment Instruments

1 January 2010 - 31 December 2010 (Revised December 2012) 
Instrument No. of Fraud Transactions Value ($) of Fraud Transactions Total No. of all Transactions
(thousands)
Total Value ($) of all Transactions
($ million)
Fraud as % of Total No. of Transactions Fraud as % of total value ($) of Transactions
Cheque 1,247 18,171,905 291,073 r 1,418,220 r 0.0004% 0.0013%
Proprietary Debit Cards 69,268 21,070,411 2,714,015 r 265,431 r 0.0026% 0.0079%
Scheme Credit, Debit and Charge Cards 758,668 r 183,427,271 r 1,989,877 273,707 0.0381% 0.0670%
Total 829,183 222,669,587 4,994,965 1,957,358 0.0166% 0.0114%
Note:

Data for total number of all transactions and total value of all transaction is sourced from data published in the RBA Bulletin. The data is sourced from Table C6 for Cheques, Table C4 and C5 for the Debit Card (ATM-POS) Category and Table C1 and C5 for Credit/Charge Cards Category

Cheque Fraud Perpetrated in Australia

1 January 2010 - 31 December 2010 (Revised July 2012)
Category Actual Exposure Recoveries*
On-Us Fraud Transactions Value ($) Transactions Value ($) Value ($)
Valueless 17 141,220 769 977,500,909 121,002
Fraudulently Altered 455 3,316,721 892 18,693,350 688,149
Stolen Blank Cheque/Book 371 4,278,286 603 6,714,948 373,295
Originated Counterfeit Cheques 186 1,405,349 351 6,475,056 138,317
Non-originated Counterfeit Cheques 103 1,318,497 531 13,655,715 198,453
Breach of Mandate 51 6,865,640 160 5,922,165 4,302
On-Us Total 1,183 17,325,713 3,306 1,028,962,143 1,523,518
   
Deposit Fraud
Valueless 29 647,331 680 17,551,608 90,891
Valueless - Kite Flying 2 8,347 68 24,609,112 1,195
Third Party Conversion 33 190,514 45 835,227 11,232
Deposit Total 64 846,192 793 42,995,947 103,318
   
Total 1,247 18,171,905 4,099 1,071,958,090 1,626,836

* Data on the “number” of Recoveries is not collected.

“Actual” losses can relate to “Exposure” during an earlier period. This explains why, in some reporting periods, actual losses may exceed exposure.

Explanation of Cheque Fraud Categories
On-us Fraud

On-us cheque fraud includes cheques issued by Financial Institution X and deposited back into Financial Institution X. Categories for On-Us Fraud include:

Valueless : - Covers cheques drawn on an account where there appears to be suspicious circumstances or where it is thought that the Cheque is stolen or forged or in any other way is fraudulently issued and action is taken in terms of Rule 4.4 in Schedule 10.

Fraudulently Altered Cheques :

Payee Only - cheques that have been altered to show payee details other than those originally authorized by the drawer and where no other area of the cheque has been altered.

Amount Only - cheques that have been altered to show $-amount details other than those originally authorized by the drawer and where no other area of the cheque has been altered.

Both Payee AND Amount - Cheques that have been altered to show payee details AND $-amount details other than those originally authorized by the drawer and where no other area of the cheque has been altered.

Note: Fraudulently altered cheques do not include cheques with forged signatures. These are included in Stolen Blank Cheque/Book and Originated or Non-Originated Counterfeit Cheques.

Where alterations are made to the MICR line, items are included in the counterfeit category.

Stolen Blank Cheque/Book - this includes original stolen blank cheques that are written or marked in order to be passed off as if by the legitimate signatory. Includes forged makers mark.

Originated Counterfeit Cheques - originated counterfeit cheques are produced using the paper of the original cheque to create a new, unauthorized cheque. Techniques used in this process include washing, laser printing, scanning and desk-top publishing.

Non-originated Counterfeit Cheques - non-originated counterfeit cheques made on new paper to create a new, unauthorized cheque. Techniques used in this process include laser printing, photocopying, scanning and desk-top publishing. This category also includes items where the MICR line has been altered.

Breach of Mandate – this involves payment of cheques which do not follow the original instructions or arrangements set up. That is, the cheque may require two signatories but the financial institution, through error, allows only one signatory. Other examples include a cheque drawn by a designated authority such as Financial Officer or Accountant and used for fraudulent purposes.

Deposit Fraud

Valueless - Covers cheques deposited to an account knowing that these cheques should not be honoured on presentation by the drawee financial institution as they are valueless (lack of funds), counterfeit, reported stolen, have been fraudulently altered or are in breach of mandate (e.g. do not contain required number of signatures).

Note: This category excludes customer cheques dishonoured or returned for lack of funds where cheques were drawn in error, that is, there was no intent to defraud.

Valueless: Kite Flying - the activity of depositing valueless cheques and making withdrawals against those valueless cheques, between accounts owned by the same person. Also called round robin transactions.

Third Party Conversion - this category includes unaltered cheques which have been deposited to an account other than the payee. This arises where the financial institution has made insufficient enquiry or verification of the depositor regarding their title to the cheque. It also includes cheques where there are two payees but the financial institution has allowed one payee to deposit the amount into their personal account without authority from the other payee.

Proprietary Debit Card Fraud Perpetrated in Australia

1 January 2010 - 31 December 2010 (Revised July 2012)
Category Transactions Value ($)
Debit Card Fraud – PIN Used:
Lost/Stolen 11,513 3,659,661
Never Received 2,225 837,865
Counterfeit/Skimming 52,155 15,285,203
Other 2,481 950,621
PIN Used Total 68,374 20,733,350
 
Debit Card Fraud – PIN Not Used:
Lost/Stolen 270 62,057
Never Received 78 15,161
Counterfeit/Skimming 468 110,106
Other 78 149,737
PIN Not Used Total 894 337,061
   
Total Debit Card Fraud 69,268 21,070,411

Note: For fraudulent transactions initiated at ATMs, POS terminals and other devices, the above statistics incorporate all transactions where either "cheque" or "savings" was selected, regardless of the type of card used (that is debit card, 'combo card', scheme card etc).

Minor revisions have been made to the fraud figures.

Explanation of Proprietary Debit Cards Fraud Categories

Lost/Stolen - fraud resulting from the loss or theft of an existing card and a fraudulent transaction has taken place. Where the authorised cardholder is NOT in possession of the card and a fraudulent transaction has taken place this is deemed to be Lost/Stolen. Examples include, although not limited to, situations in which it is suspected a family member/friend is using the card and the card details have been compromised, active card left in ATM, customer disputed transactions and PIN given under duress. Card Never Received - fraud where a card has been intercepted (stolen) during delivery to the customer and used before it was received by the customer.

Counterfeit/Skimming - the use of altered or illegally reproduced cards including the replication/alteration of the magnetic stripe and/or changes to the details on the face of the card with intent to defraud. Skimming is a form of magnetic-stripe counterfeiting in which criminals are able to copy magnetic stripe track information (including Card Verification Value - CVV) from a valid card. Information is then encoded on a counterfeit or stolen card and then used fraudulently.

Other - fraud that cannot be categorized under any of the other fraud type categories. This includes identity takeover and false applications, fallback transactions/downtime transactions, merchant collusion in fallback, system malfunctions, bank error etc.

This category does NOT include MOTO transactions, internet transactions or spam phishing which are not acceptable transactions in CECS. Where claims are not investigated and are not confirmed to be fraudulent, they should not be included in the Debit Card fraud reporting (ie. goodwill). etc.

Scheme Credit, Debit and Charge Card Fraud
Perpetrated in Australia and Overseas on Australia-issued Cards

1 January 2010 - 31 December 2010 (Revised July 2012)
Category In Australia Overseas Total
Transactions Value ($) Transactions Value ($) Transactions Value ($)
Lost/ Stolen 35,146 7,447,303 23,424 5,520,454 58,570 12,967,757
Never Received 7,813 1,992,260 559 502,712 8,372 2,494,972
Fraudulent Application 1,991 923,747 290 138,097 2,281 1,061,844
Counterfeit/ Skimming 29,151 12,617,570 55,225 21,987,229 84,376 34,604,799
Card Not Present (CNP) 197,551 46,141,355 404,103 85,009,309 601,654 131,150,664
Other 2,656 890,541 759 256,694 3,415 1,147,234
Total 274,308 70,012,776 484,360 113,414,495 758,668 183,427,271

Fraud Perpetrated in Australia on Cards issued Overseas

Category Transactions Value ($)
Lost/ Stolen 18,540 5,719,967
Never Received 1,829 560,553
Fraudulent Application 333 127,460
Counterfeit/ Skimming 84,643 28,223,767
Card Not Present (CNP) 93,421 30,172,469
Other 1,630 718,487
Total 200,396 65,522,703
Explanation of Scheme Credit, Debit and Charge Cards Fraud Categories

Lost/Stolen Card - fraud resulting from the loss or theft of an existing card and a transaction has taken place without the cardholder’s consent or authority.

Card Never Received - fraud where a card has been intercepted (stolen) during delivery to the customer and used before it was received by the customer.

Fraudulent Application - fraudulent applications are applications for card accounts using a fictitious identity, using someone else’s identity or providing false information during the application process.

Counterfeit/Skimming - the use of altered or illegally reproduced cards including the replication/alteration of the magnetic stripe and changes to the details on the face of the card with intent to defraud. Skimming is a form of magnetic stripe counterfeiting in which criminals are able to copy magnetic stripe track information (including Card Verification Value - CVV) from a valid card. Information is then encoded on a counterfeit or stolen card and used fraudulently.

Card Not Present (CNP) - the use of account information including pseudo account information without the physical card being involved, via the phone, mail, Internet etc. without the authority of the cardholder. This category also includes fraud where a card should normally be present (eg: in a retail transaction) but a merchant has chosen to accept the transaction based on a card number only and it turns out to be a fraudulent transaction.

Other - fraud that cannot be categorised under any of the other Fraud Type categories. For example fraud using imprints of cards at merchants, or use of an existing account without the authority of the cardholder by a person who gains access to and use of the account through an unauthorized means, such as a fraudulent change of address or request for re-issuance of cards (but not lost or stolen cards).