You Have A 1/25 Chance Of Suffering From Credit Card Fraud

We frequently worry about our credit card details being stolen and misused, but how common is the problem and how much might we lose? New figures from the Australian Bureau of Statistics (ABS) suggest that while credit card fraud is a large problem, we're almost as likely to be sucked in by other scams.

The ABS research covers "personal fraud", a broad area that includes credit card fraud, identity theft and general scams. The survey asked 26,405 households about their fraud-related experiences. The good news — and it's worth mentioning this — is that the vast majority of people were not victims of any of these crimes. Just 3.7 per cent experienced credit card fraud, 0.3 per cent suffered from identity theft, and 2.9 per cent were victims of other scams. The total cost of personal fraud was calculated at $1.4 billion.

That means, in absolute terms, you are not particularly likely to suffer from credit card fraud. On the other hand, it's much more likely to happen to you than winning the lottery, and that 3.7 per cent number translates to 662,300 people. So it's definitely worth the effort to check your statements and immediately query anything suspicious so that the charge can be reversed. According to the survey, 72.4 per cent of credit card fraud victims sought reimbursement, and 64 per cent received it.

Some more notable figures:

  • Three in five victims of personal fraud suffered a financial loss as a result, with a median loss of $300.
  • The richer you are, the better the chance you'll be a victim of identity theft. 7.2 per cent of people earning more than $2,000 a week suffered identity theft, compared to 2.7 per cent of those earning under $500 a week. This makes sense; who wants to pretend to be poor?
  • While the majority of scams were seen online (55.7 per cent), phone scams remain common as well (41.2 per cent).
  • While 6.4 million Australians were exposed to a scam, just 514,500 responded to one. The most commonly encountered scam types are seen below, with fake lotteries topping the chart.

ABS


Comments

    The big issue is to 'Actualy' check your statements, because if you find something wrong the bank will reimburse you and try to fix the hole, they do it all the time. However they don't give a shit if you don't find anything because you didn't bother. Banks don't advertise it but they get hacked very regularly and I believe they budget for it as a part of their business practice.

    Recently also a fair bit of rental scams going around, where people are advertising their property online (privately) but of course the property either doesn't exist or doesn't belong to them. They suck younger people in and get them to deposit holding deposits. These funds are then muled via Western Union to overseas destinations. I assume this falls under "Other Scams" along with the ever present Romance/Dating Scams.

    Guess you're (Jaezass) forgetting that many banks have detection systems in place to detect fraudulent transactions and proactively stop the fraud from happening, or failing that, contact you to advise you of the fraud and so on.

    Yes, it's all good and well to make this stuff up based on your perception and anecdotal evidence. Banks might get a bad rep from over charging fees and fee in general but when you work in the fraud industry you realise it's a whole other side to the business.

    Banks get hacked into.. yes.. all the time (sarcasm). Maybe the POS systems get hacked into.. but the actual banks? Are you kidding?

      I'm not forgetting anything! Of course banks have detection systems, they'd be bloody fools not to. However they are far from perfect and the sheer amount of fraud that happens does go largely unreported because it would be a security nightmare to have to explain what happened every time it did. As for making this shit up, maybe you need to asks a few people who actually work in banks, they won't answer questions on the record though. So as to your last paragraph, YES they do get hacked regularly, they actually prevent a good portion of it with their security systems.

      Dude seriously, look at the headline... 1/25 chance! Some of the worlds most highly protected systems, get hacked on a regular basis, do you really think that banks, which have to be reasonably easy to access by their very nature have a better way to do it?

    Surprised that the chances are so high. I personally always check my statements online and the paper version.

    Touch wood, nothing yet.

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