Credit Card Fraud - Part I

In this series we are going to cover one of the biggest problems all over the world. Credit card fraud.

For those who may not exactly cognize what credit card fraud is, a simple definition. Credit card fraud is the enactment of making a purchase using person else's credit card information. Sounds like something that should be hard to do. Unfortunately, it's not.

There are many types of credit card fraud, the most common we'll cover in this article.

First there is what is called "mail non-receipt fraud" which is when a new or substitution card is sent by the bank and never received by the individual it was supposed to travel to. This have been mostly combated by the banks sending out inactive credit cards where the individual have to do a phone phone call in order to trip the card. Otherwise it can't be used. Unfortunately there are some banks that make not make this and still direct out cards that are already activated.

Then there is what is called "chargeback fraud" where a legitimate cardholder utilizes the card to purchase commodity or services. Then when the statement come ups they name the credit card company and claim they never received the point or service or that they never authorized the transaction.

Another type of credit card fraud is called "skimming" where an employee or merchant do a second transcript of the person's credit card inside information before processing the payment. This transcript is then sold on the achromatic market to people who clone illegal transcripts of these cards. Fortunately, skimming have go less of a problem since the introduction of CVV and curriculum vitaes codes. These are not encoded on the card strip but are physically written on the dorsum of the card. This is a required three figure codification to finalize all transactions. Without this codification even a cloned credit card will not work.

Skimming at ATMs have also been a problem. What the illegally put up standard atmosphere machine makes is topographic point a skimmer device somewhere in the machine that reads the magnetic strip attached to the card. This is used together with assorted devices that monitoring device the computer keyboard of the standard atmosphere by attaching a fake facia over the original keypad. Fortunately, this is not as common today as it was old age ago when standard atmosphere machines were relatively new.

Then of course of study there is "online credit card fraud" which is the most common type of credit card fraud today with all the transactions that people make each day. This type of fraud gets a small complicated but simply stated, when a individual utilizes their credit card online, hackers supervise the person's entry into the merchant's system and essentially steal the credit card information without the individual having any thought this is happening. Another manner to get a person's credit card information online is to direct an functionary looking electronic mail telling the individual that they have got to update their credit card info. They are sent a fake nexus to travel to where the information is collected and used for whatever intent the swindler wants, whether to sell the information or usage it to do purchases himself.

In the adjacent article in this series we'll travel into credit card fraud into more than depth.