An Australian parliamentary committee has called for banks to create an opt-in service for contactless cards in order to counter fraud.
In a report into financial-related crime, the parliamentary joint committee on law enforcement revealed concerns that launching new technology without consulting law enforcement bodies has the potential to increase crime in the sector.
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The report cites evidence provided by Victoria Police revealing a notable rise in deception offences with new technology, which allowed fraudsters to commit multiple low value transactions with stolen credit cards.
Victorian Police claimed that contactless crime led to 100 extra credit deceptions per week in the state. At the same time, it also criticized financial institutions for not consulting with the police before introducing such features.
The committee therefore recommended that providers issuing debit and credit cards will need customers’ consent for contactless payment technology on their cards prior activation.
"While banks have argued the fraud risk of new technologies is accounted for in their banking systems, the committee believes that consumers should have the option of disabling contactless payment features," the committee said.
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By GlobalData
