Credit Card Fraud

The revenue loss in Australia’s accommodation industry due to credit card fraud is not explicitly reported in most public datasets, but insights can be drawn from broader trends and industry-specific factors:

Overall Fraud Context

In 2022, card fraud in Australia totalled $607 million, with 90% stemming from card-not-present (CNP) fraud (e.g., online bookings), per the Australian Payments Network (AusPayNet).

The hospitality sector (including accommodation) is a frequent target for CNP fraud due to high transaction volumes and online bookings.

Accommodation Industry Impact

While no exact figure exists for accommodation alone, hospitality sectors globally often see 5–15% of total CNP fraud losses. If applied to Australia’s 546millionCNPfraud(90546millionCNPfraud(90607M), hospitality could face $27–82 million annually, with accommodation forming a significant portion.

Post-pandemic increased online bookings may have elevated exposure to fraud. High average transaction values (e.g., multi-night stays) amplify losses compared to other sectors.

Additional Costs

Beyond direct fraud, businesses face chargeback fees, operational disruptions, and reputational harm. For example, chargebacks can cost 2–3x the transaction value.

Compliance costs (e.g., PCI-DSS standards) and fraud prevention tools (3D Secure, AI monitoring) add indirect expenses.

Mitigation Efforts

Adoption of EMV chips and tokenization has reduced in-person fraud, but CNP remains a challenge.

Industry-specific solutions like real-time booking verification and guest identity checks are increasingly used.

While precise accommodation-sector data is limited, estimates suggest annual losses likely range in the tens of millions of dollars, with broader impacts on operational costs.