Scribd
Upload
154 views22 pages

Cred Fraud

The document discusses credit card fraud techniques and prevention. It provides examples of credit card fraud cases involving identity theft and misuse of credit card details. The document outlines that credit card fraud occurs through traditional card-related methods, merchant-related techniques, and internet-related means. It also discusses the impact of fraud on cardholders, merchants, and banks. The document recommends fraud prevention technologies and behaviors consumers can adopt to protect their credit cards, such as shredding documents with personal details and reporting unauthorized charges immediately.

Uploaded by

Ashish Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
154 views22 pages

Cred Fraud

The document discusses credit card fraud techniques and prevention. It provides examples of credit card fraud cases involving identity theft and misuse of credit card details. The document outlines that credit card fraud occurs through traditional card-related methods, merchant-related techniques, and internet-related means. It also discusses the impact of fraud on cardholders, merchants, and banks. The document recommends fraud prevention technologies and behaviors consumers can adopt to protect their credit cards, such as shredding documents with personal details and reporting unauthorized charges immediately.

Uploaded by

Ashish Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 22

CREDIT CARD FRAUDS

Objectives
• Identify and describe examples of Credit
Card frauds.

• List ways to protect yourself from Credit


Card fraud in card present and card not
present scenario.

• Be aware with upcoming technologies in


the concerning field.
Outlines of Presentation

• Introduction
• Credit Card Fraud Techniques
• Credit Card Fraud Case Studies
• Current State of the Industry
• Impact of Credit Card Frauds
• Fraud Prevention Technologies
• Recent Developments in Fraud Management
• Some Suggestions - How to protect Credit Card
against fraud or theft?
Introduction

Types of Identity Crime Include:


• Identity Theft
• Credit Card / Access Device Fraud
(skimming)
• Check Fraud
• False Identification Fraud
• Passport / Visa Fraud
Cont…
• Definition of Credit Card Frauds
• Credit card frauds are committed in the
following ways:
– An act of criminal deception (mislead with
intent) by use of unauthorized account and/or
personal information
– Illegal or unauthorized use of account for
personal gain
– Misrepresentation of account information to
obtain goods and/or services.
Credit Card Fraud Techniques

Credit Card
Fraud
Techniques

Traditional Merchant Internet


Card Related Related Fraud Related Fraud
Fraud Techniques Techniques
Techniques
Credit Card Fraud Techniques…

• Card Related Frauds


– Application Fraud
– Lost/Stolen Cards
– Account Takeover
– Fake and Counterfeit Cards
• Erasing the Magnetic Strip
• Creating a Fake Card
• Altering Card Details
• Skimming
• White Plastic
Cont…

Merchant Related Frauds


– Merchant Collusion
– Triangulation

Internet Related Frauds


– Site Cloning
– False Merchant Sites
– Credit Card Generators
1. Amit Tiwari swindle online credit
card company - Credit Card Fraud Case

• CC Avenue verifies and


validates credit cards of
buyers for over a thousand e-
commerce Web sites. It
conducts checks like IP
mapping, zip code mapping
and reverse lookup of
telephone numbers.
• Amit, who was offered by CC
Avenue for Web designing
services on www.mafiaz.com.
Cont…

• Amit processed several transactions,


worth Rs 311,508, via CC Avenue (from
November 2002 to February 2003) with credit card
details of consumers that he found on the
Net.
• (In April 2003) Avenue began receiving
charge-backs from the credit card
holders, who denied using mafiaz.com's
Web designing service.
Cont…

• On complaint of company, Amit trapped by


mumbai police and later he confessed his
offence.
• He's been charged for cheating under
Section 420 but not in IT Act.

Source: http://www.rediff.com/netguide/2003/aug/23fraud.htm
2. BPO/Credit Card Fraud Case

• Case registered against a call centre


employee in 2002
• He had misused the credit card
details of one of the clients
• Gifted one SONY TV to himself
• The accused was arrested
• Admitted his guilt
• Convicted by the Court
Current State of the Industry

• Credit card frauds


are taking place Method %
over the internet 15 Lost of Stolen Card 48%
times higher than
face-to-face Identity Theft 15%
transactions
Skimming (cloning) 14%
Counterfeit Card 12%

Source: Celent Mail Intercept Fraud 6%


Communications,
January 2003 Other 5%
Current State of the
Industry…
Impact of Credit Card Frauds

• Impact of Fraud on Cardholders


• Impact of Fraud on Merchants
– Cost of goods sold
– Shipping cost
– Card association fees
– Merchant band fees
– Administrative cost
– Loss of Reputation
Impact of Credit Card Frauds…
• Impact of Fraud on Banks (Issuer/Acquirer)
– Indirect cost: like
• Administrative Cost
• Manpower Cost
Fraud Prevention Technologies

• Manual Review
• Address Verification System (AVS)
• Card Verification Methods (CVM)
• Negative and Positive Lists
• Payer Authentication
• Lockout Mechanisms
• Fraudulent Merchants
Recent Developments in Fraud
Management

• Simple Rule System


• Risk Scoring Technologies
• Neural Network Technologies
• Biometrics
• Smart Card
How to protect Credit Card
against fraud or theft?

• Sign your card- as soon as you receive it!


• When you use your card at an ATM, enter
your PIN in such a way that no one can easily
memorize your keystrokes.
• Don't leave your receipt behind at the ATM.
Your PIN and account number from a
discarded receipt could make you vulnerable to
Credit Card fraud. Also, don't throw out your
Credit Card statement, receipts or carbons
without first shredding them!
• Never give your Credit Card number over
the telephone unless you initiated the call.
Cont…
• Even when you place the call to a legitimate
merchant, never give your Card number out
over a cordless phone. One common scam is
when someone calls you "back" right after you
place an order, claims to be from the merchant
and tells you that there was a problem with your
Card number -- would you mind giving it to
them again? The best thing to do is to ask them
to read you the number they have - and then
change any incorrect numbers.
• Ignore any Credit Card offer that requires
you to spend money up-front or fails to
disclose the identity of the Card issuer.
Cont…
• Make certain you get your Card back after
you make a purchase (one habit to observe is
to leave your wallet open in your hand until you
have the Card back). Also, make sure that you
personally rip up any voided or cancelled sales
slips.
• Always keep a list of your Credit Cards, Credit
Card numbers and toll-free numbers in case
your Card is stolen or lost.
• Check your monthly statement to make
certain all charges are your own, and
immediately notify the Card issuer of any errors
or unauthorized charges.
Thank You All

You might also like