Bank accounts could be drained as 'card skimming may get worse'

The issue of card skimming could worsen, leaving people's bank accounts drained, one industry expert has said.

There is a fear that Australian's bank accounts could be drained as card skimming may be set to get worse, according to one industry expert.

Jim Tate, chief product officer for Westpac – which offers a range of credit cards – said he thinks there might be an increase in fraud if old-style Eftpos machines continue to be used, the Australian Associated Press reported.

But he told the Senate Economics Reference Committee public hearing that it was the banks' responsibility to ensure their customers' details are safe.

He added: "The second element is to ensure the data feed from each terminal is quick and gets up through our fraud process quickly."

Criminals can use card skimming machines instead of the older Eftpos versions to raid an individual's personal bank account.

Acting Detective Inspector Jon Strohfeldt of the Fraud and Corporate Crime Group noted earlier this month that credit card and identity fraud were on the rise.

By Nate Sawyer