Money on the last legs. But the growth of card payments makes life very easy for scammers. If you are worried?
We cannot fight the decline of money. He goes on the way checks. In the past, cash could be something that only strange old people used, and other shoppers will be amazed to see if you get the currency from your wallet at the checkout.
The following graph shows how quickly cash came out of dislike. It ranged from 60% to 40% of transactions in just a few years.
Please note that Australian data has not been updated for several years. Now we can easily fall below the level of Sweden. One key to this is the following chart, which shows how many ATM seizures we make each year. He sank down. The average Australian goes 24 times a year and falls.
If you receive money weekly (52 times a year), it is more than twice as often as usual. If you do, you will probably notice that the queues at ATMs are now much shorter.
ATM withdrawals dropped from 40 per year per person to 24 per year per person in about eight years. If the trend continues, banks may have to pull a lot of ATMs right off the wall.
There is a small mystery in the history of Australian money. Despite the fact that the amount of cash we use is in free fall, the amount of cash has increased. The reserve bank that prints our cash is not 100 percent sure where everything goes.
It is not used (or, at least, not through formal channels). The best guess is that there are loads and loads, they are clear and quiet. The following graph shows how many accounts exist per person. A man accounts for about seven notes for twenty dollars. I use them from time to time, which makes sense to me. Hundred dollar notes surprise me. At the moment there are about 15 notes in the world for every person in Australia.
But where are they all? I do not collect them, I swear. Over the past two years I have touched perhaps one bill for $ 100!
Even the RBA is not too sure about what is happening in the hundreds when it uses all of this polymer for printing.
They suspect that many of them are stored on the shelf by people who trust the currency of Australia more than their own.
Cashless transactions will not be popular. A government that can track your spending is what dystopia films say.
But it is easy to overestimate the risks. If the money disappears, anonymous alternatives will certainly appear. There are many economies in the world where the dollar economy is close to the mainstream economy. If the government gets rid of cash — and let's be clear, they are not offering it — people can still use US dollars. Or NZ dollars, Apple gift cards, or bitcoin.
FRAUD FILLS THE GAP
But back to the money. The end of cash allows us to use our credit cards more and more. Especially on the Internet.
The more we place our credit card numbers, the higher the likelihood that they will fall into the wrong hands.
The following graph shows credit card fraud in Australia. The left side shows ingenious transactions of people with your card in hand. Such fraud does not grow at all.
The right side shows ingenious transactions by people who know your name, credit card number, expiration date, and the code on the back of your card. This kind of fraud is absolutely stormy.
If you are a victim of credit card fraud, the most likely form is that someone places your credit card information on a website. Every year about half a billion dollars of this kind of fraud.
I find it bothers that somewhere in a dark network someone sells my credit card details for a few dollars. But this is big business. Like many online stores, sellers of stolen credit cards recently made sales on Black Friday.
I used the words "credit card fraud victim". But it may be wrong to use when it comes to credit card fraud.
In the secret of credit card fraud, banks will almost certainly pay for it. To quote the official Australian network payment audit report 2018:
"Australian consumers are not liable for losses related to fraud, and will be returned if they properly observe confidential data."
You are unlikely to be forced to pay if someone uses your credit card – if you do not agree to tell someone your PIN or place your credit card number on the Internet. Both Mastercard and Visa offer a Zero Liability policy (there are a few conditions, but they are quite minor).
Many people do not seem to know this. I still know people who are concerned about using their credit cards on the Internet. You are not mistaken about the risk of fraud, mind you. But they are mistaken about the risk to them personally. I say that I use your card with confidence on the Internet. And if you see an ingenious transaction, let them know.
This, at least, should be grateful, as we are moving away from money. Banks are sure that the devil did not return to you if someone pulled out your money and used it!
But banks are unlikely to put up with fraud forever. Soon they might well have decided that the protection on the cards was too weak. The combination of the card number, name, expiration date and the code on the back of the card is a lot of information that a person can remember, but it’s trivial to share online. It looks like one long, complex password. They call this single-factor authentication.
Online payments reset one-factor authentication (they send a code via SMS), and credit cards can do something like that. One creative idea adds a bit of screen to your card, so the number on the back changes every hour.
If this becomes popular, people selling stolen cards will have to work very quickly to stay ahead.