Myki fraud mounts to millions

Myki card fraud racket results in millions in refunds for victims of international cybercrime

Public Transport Victoria (PTV) has refunded $4.2 million to non-Australian credit card holders who have fallen victim to an online myki card scam.

Essentially, fraudulently obtained credit card details have been by used by cybercriminals to buy myki cards and then on-sold.

Commuter’s legitimate credit card details used to purchase myki cards are secure; this is rather a case of scammers using illegally obtained credit card details to purchase myki cards online.

A PTV spokesperson sayscybercrime is a world-wide problem and like many other businesses across Australia, the organisation has been victim of fraudsters targeting online transactions.

"Every step is taken to protect the system against activity such as this.

"Customers who use our online top up service can rest assured their credit card information has not been accessed and they should continue to top up online as normal."

A spate of attack by international fraudsters last year prompted PTV to act.

Fraud detection measures were introduced by PTV to fight online credit card fraud and the organisation says this has reduced the number of fraudulently processed transactions by 95 per cent.

"The average weekly fraud losses incurred by PTV in July 2015 is around $1,500, down from around $110,000 in August 2014 prior to the fraud prevention actions."

PTV tracks fraudulently purchased myki cards and blocks them from use and says customers should only purchase myki cards through authorised outlets such as a retailer or at train stations.

"Most fraudulent transactions are made with illegally obtained international credit card details.

"For online sales which are deemed ‘card not present' the merchant bears the responsibility for the transaction."

When PTV's bank is notified of a fraudulent transaction, it removes funds from the PTV bank account.

As soon as PTV becomes aware of a fraudulent transaction, the organisation removes any remaining balance from the related myki card and blocks the card from further use.

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