We all well known by credit card. They make our life full of pleasure. But there is a chance of fraud by using credit cards. Let us get the knowledge about the major types of fraud.
Unauthorized use of credit cards : This is a most frequent type of fraud. Fraudsters use the lost or stolen cards within hours of the loss or theft on many occasion, the card holders are not aware that their cards are stolen or lost. Until they get their monthly statements. Many card holders don’t sign on the back of the card also which make the fraud an easier job.
Online Credit Card Fraud : As per information available with fraud examiners manual more than 700 crores in online business was lost to fraud in the year 2001. In general about 5% of the total sale made online were fraudulent. Now, securities levels are available to prevent this type of fraud but many card holders are still unaware of these security system available in the net.
Fraud Groups : These are some organized groups which steal credit card and bank information of card holders from and the credit card are duplicated for distribution among the group. They prepare ID card also for producing at the counter in case of identity check. Then these groups go on a spending spree till the limit is over.
Shave and Paste : Any number of alpha or numeric character are sliced from the card and other character are attached to the card surface. Utilization fast drying exopxy type glues. This is done to put an entirely now but valid account number or to change the name, so that fraudsters can use the card as if is his own.
Counter feting the card : This is one of the common method used by some organized group. However, duplication is done in a very scientific way and the counterfeit cards appears to be genuine. The most difficult of the duplication is to produce the hologram. However, true hologram use a “lentculal refraction”? Where as duplication is only a reflected material. Duplication hologram are attached on the surface of the cards, wheras the original is embossed. Duplication hologram sometime will not change colors as the original one do when viewed from different angles. Even these holograms are duplicated and distributed for a prize. This method is very common in China, Taiwan and Hong Kong.
Mail order Fraud : In many cases the fraudsters. Would act as a credit card representative and then inform that a prize or discounted travel trip has been won by the card holder. The victim is asked to read out the credit card number for verification. Many card holders full victims to his tactics. This card is used to purchase a lot of card material thought catalogs and mail order. The fraudsters would give an address not occupied by him and then later collect the material from the parcel service offices.