Bank acts to limit impact of credit card fraud

A bank has begun blocking credit cards following the discovery of a major fraud.

Westpac has acted to help minimise the disruption caused by a massive credit card scam which has hit consumers in New South Wales.

An organised criminal gang, thought to be based in Asia, has stolen at least $50 million in a credit card skimming operation, which has involved EFTPOS terminals being modified to allow criminals to obtain card details.

Many users of Aussie credit products have checked their bank accounts to find there have been unauthorised transactions, many of them involving cash withdrawals in Asia.

In a bid to limit the damage, Westpac has blocked more than 10,000 debit and credit cards, reports the Daily Telegraph.

The bank hopes the move will prevent money being stolen from consumers who do not realise their debit or credit card details have fallen into the wrong hands.

It will also help Westpac to limit its losses from the scam, as the Australian banking industry has said it will refund money to card holders who fall victim to the fraud.

By Kate Guthrie