Credit card fraud is general term for theft and fraud that is committed with a credit card or similar payment mechanism as a deceptive source of funds to complete a sales transaction. Credit card fraud can also be connected to identity theft.
Credit card fraud is split into five categories:
- Counterfeit credit card – constitutes 37 percent
- Lost or Stolen Cards – Makes up 23 percent
- No-Card Fraud – constitutes 10 percent
- Non-Receipt Fraud – Makes up 7 percent
- Identity Theft Fraud – Makes up 4 percent
The end result of credit card fraud costs billions of dollars each year. Altogether, charge card fraud costs cardholders and credit card issuers as much as 500 million annually. The fraud begins when the physical card is stolen or the information Related to the account is compromised. This information contains the card account number or other information that would be available to a retailer during a legitimate trade.
The compromise can happen in a variety of ways and is usually conducted without the card holder being aware that anything is amiss. One example is when a store clerk reproduces sales receipts for after fraudulent use. The current growth of prtship carding credit card usage on the World Wide Web has made these Database security problems very costly. Sometimes millions of accounts are compromised simultaneously. The email and the Internet are important arenas for fraud against both the retailers who ship and sell products and Internet retailers who supply solutions.
Here are some tips to help protect you from credit card fraud:
- Sign your credit cards when they arrive.
- Do not take credit cards in your wallet. Carry them separately in another small holder.
- Maintain an accurate record of all account numbers, expiration dates, and the contact information for each company in a secure location.
- View your card during the transaction and get it back as quickly as possible you can.
Close circuit cameras are often used along with a card access system. They serve to identify unauthorized people when a problem occurs or question of entrance comes up. This permits security personnel or management to review video footage of people gaining entry to the building. If a theft or security breach occurs, law enforcement may also use this footage to determine identity and help with their investigation
- Destroy erroneous receipts and carbons.
Merchant associations have developed some prevention measures but these have not met with much success. Customers want to have the ability to use their credit cards without problems and there’s little incentive to pursue extra security due to current laws that restrict consumer liability in fraud scenarios. Merchants can execute some prevention measures but they risk losing customers if the steps make doing business undesirable.