Credit Card Fraud – section I
In this series we are going to screen one of the biggest problems all over the world. Credit card fraud.
For those who may not exactly know what credit card fraud is, a simple definition. Credit card fraud is the act of making a recall using someone else’s credit card information. Sounds like something that should be difficult to do. Unfortunately, it’s not.
There are many types of credit card fraud, the most favorite we’ll cloak in this article.
First there is what is called “mail non-receipt fraud” which is when a original or replacement card is sent by the bank and never received by the person it was supposed to go to. This has been mostly combated by the banks sending out lazy credit cards where the person has to invent a phone call in order to activate the card. Otherwise it can’t be faded. Unfortunately there are some banks that do not do this and quiet send out cards that are already activated.
Then there is what is called “chargeback fraud” where a legitimate cardholder uses the card to take goods or services. Then when the statement comes they call the credit card company and claim they never received the item or service or that they never authorized the transaction.
Another type of credit card fraud is called “skimming” where an employee or merchant makes a second copy of the person’s credit card details before processing the payment. This copy is then sold on the murky market to professionals who clone illegal copies of these cards. Fortunately, skimming has become less of a pickle since the introduction of CVV and CVS codes. These are not encoded on the card strip but are physically written on the benefit of the card. This is a required three digit code to finalize all transactions. Without this code even a cloned credit card will not work.
Skimming at ATMs has also been a dilemma. What the illegally location up ATM machine does is state a skimmer method somewhere in the machine that reads the magnetic strip attached to the card. This is veteran together with various devices that monitor the keypad of the ATM by attaching a false fascia over the novel keypad. Fortunately, this is not as approved today as it was years ago when ATM machines were relatively original.
Then of course there is “online credit card fraud” which is the most favorite type of credit card fraud today with all the transactions that people do each day. This type of fraud gets a shrimp complicated but simply stated, when a person uses their credit card online, hackers monitor the person’s entry into the merchant’s system and essentially hold the credit card information without the person having any concept this is happening. Another contrivance to obtain a person’s credit card info online is to send an official looking email telling the person that they have to update their credit card info. They are sent a bogus link to go to where the info is quiet and passe for whatever purpose the scammer wants, whether to sell the info or consume it to manufacture purchases himself.
In the next article in this series we’ll go into credit card fraud into more depth.
