China's Airline Sector Experiences a 60% Increase in Attempted CNP Fraud Over Six Months
Attempted card-not-present (CNP) fraud for China’s airline sector increased from 5% to 8% over the past six months, representing a 60% increase, according to Retail Decisions (ReD), a card issuer and fraud prevention firm, and Chinabank Payment (CBP), a payment service provider and prepaid card issuer.
A huge increase in the online payment market has opened the door to fraudulent activity that goes beyond the airline sector. According to a recent Analysys International report, China’s online payment market will reach US$78.7bn in 2009, an increase of 128% compared with 2008. Analysys International predicts that China’s online payment market will reach US$244bn in 2012. With increasing volumes, Chinese merchants can expect CNP fraud to increase dramatically in the coming years.
“The growth in China’s payment market is incredible. However, we see that there are significant changes [in China’s payment market] occurring with the government initiatives to shut-down online gambling and adult content sites prior to National Day, as well as the impending issuance of the Electronic Payments License,” said Zhao Guodong, founder of Chinabank Payment.