Credit Card Fraud Essay

3314 words - 13 pages

The advent of technology, in the form of credit card, brought in convenience and made life simpler for us, but along with it came the Pandora’s Box. While credit cards have made life easy for us, they have also managed to make life easy for the crooks. While enabling us to purchase things we fancy whilst seated on our couch, it has on the other hand made it easy for fraudsters to guzzle away money that is not truly theirs.

In this paper, I would be:
i. Problem Statement
ii. Introducing the topic about credit card fraud
iii. Talking about different types of credit card frauds
iv. Current issues related to this fraud
v. Tools used for Credit Card Fraud
vi. Future effects of this fraud
vii. Credit Card Fraud Detection
viii. Legal Action towards credit card fraud
ix. Steps to prevent such frauds
x. Conclusion

PROBLEM STATEMENT
Have you ever forgotten to get a copy of your credit card receipt the last time you visited a restaurant and had paid your bill with a credit card? Did you know that many of these receipts have your credit card number printed right there for anyone to see (and use)? And, if you've signed your receipt, your signature can be copied by any. This can lead to the most critical form of identity theft. With this handy information, some unprincipled personal can easily start his or her Christmas or New Year’s shopping by phone or on the Internet using your credit card number. You would be unaware about this theft until you get your monthly statement and if you are a person who would be least bother your statement then you would end up paying more money for something that never used or purchased. Credit card fraud is viral and a growing means of stealing money from credit card companies and consumers.

INTRODUCTION
Credit card fraud is a form of identity theft which is critical and most simple and common form. Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose for doing this is to products without paying and, or to obtain unauthorized funds from an account. The cost of credit card fraud worth of transactions was 7 cents per 100 dollars in 2006.If you translate theses transaction would end up in billions of dollars.
Credit card fraud can be able performed by circumstance like the one we just mentioned, or it can happen when your credit card falls into the wrong hands. All a person has to do is get these out of your mailbox and mail them in with a change of address request and start spending. Someone can even apply for a credit card in your name if they have the right information. You won't know a thing about it until the credit card company tracks you down and demands payment for the purchases. Credit card fraud can be extremely terrifying. The terrifying picture about it is that people rarely look at their credit card statement. This means charges are often...

Find Another Essay On Credit Card Fraud

Identity Fraud. What is it? How does it impact over 33 Million Victims since 1990? How does a person protect themselves from it?

2584 words - 10 pages Identity Fraud is financial fraud. "Financial identity fraud can occur within every opportunity to manipulate new or existing financial relationship" . Credit card, debit card and ATM are the most prevalent of the financial frauds and the most common type is credit card fraud. Many people obtain charges on their credit card in which they did not incur themselves. It is important that everyone regularly monitor his or her financials for potential

Identity Theft Essay

1768 words - 7 pages Identity theft is one of the most pervasive and rapidly growing criminal activities in America. It is also one of the most devastating crimes for victims. One of the most common forms of identity theft is credit and debit card fraud. Credit card fraud not only exposes private payment information to thieves, but possibly the cardholder's name, address, and social security number. A 2003 survey from the Identity Theft Resource Center found

Credit Cards

2304 words - 9 pages Credit Cards An American Way of Life Credit cards are quickly becoming a major problem for the American people. It is so easy to get into debt with a credit card, and anyone with a mailbox and a pulse can get one. Many Americans can't get out of debt and they run into credit problems; some even file for bankruptcy. The reason it is so easy to use a credit card is that when you use plastic instead of cash, you spend more because you don't

Credit Cards: A Blessing and A Curse

1902 words - 8 pages , or credit card fraud (Olivier). This is when someone steals your credit card number and uses your card to rack up debts. This could happen very easily over the phone or online, so it is crucial that a credit card holder reports fraud to their provider immediately, checks their statements closely every month, and ensures that only reputable companies and people have access to their credit card number. In conclusion, there are a wide range of

Identity Theft

889 words - 4 pages . (Department of Justice) The following are the Federal statutes and penalties related to identity fraud. 18 U.S.C.& 1028 (a)(7). This offense in most circumstances carries a maximum term of 15 years’ imprisonment, a fine, and forfeiture of any personal property used or intended to be used to commit the offense. (F.B.I..) Schemes to commit identity theft or fraud may also involve violations of other such as credit card fraud(18 U.S.C. &1029

Medicare Fraud

927 words - 4 pages . In fact, never give your Medicare number to anyone showing up at your house or calling over the phone, unless expecting them. Identity theft accounts for a large percentage of Medicare fraud cases and occurs when someone uses an individual’s personal information without consent or knowledge. Personal information includes information used to identify someone such as their name, Medicare or social security numbers, or perhaps credit card or bank

Cyber Crimes

996 words - 4 pages potential of the internet and use it to take advantage of users and businesses. Internet fraud is rapidly growing in around the world. The government is scrambling to find ways to control it. Internet fraud is a plague on the world's economy.Internet Fraud is spreading like wild fire across the globe. The most popular forms of internet fraud are auctions, credit card, lotteries and contests, work-at-home plans, and the Nigerian money offer. Eighty

The Pros and Cons of Using Credit Cards and Debit Cards

3688 words - 15 pages - Standard Chartered Bank Philippines, n.d.). 2.3.3 Security In terms of security, credit cards have a higher level of security. It also allows you better options compared to debit cards once fraud has been committed. If fraud has been committed in a transaction involving debit card users. The customer would find it difficult to regain their money since all of it has been stolen already by the merchant. On the other hand, since the money used

Fraud: Early Warning Signs of Fraud

2467 words - 10 pages The early warning signs of fraud are, usually, always ignored. There are warning signs for every type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is. Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This definition varies depending of the type of fraud used, but the person committing the fraud is always looking for financial gain. There are many types of

Identity Theift

1674 words - 7 pages Identity theft is a term used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. Unlike your fingerprints, which are unique to you and cannot be given to someone else for their use, your personal data ¬ especially your Social Security number, your bank account or credit card number, your telephone calling card number

Identity Theft

1979 words - 8 pages the victim finds that in addition to committing fraud, the person using his or her identity has also racked up thousands of dollars in credit card and other lending debt. Needless to say, this is a virtual nightmare for the victim. Paying careful attention to the signs of identity theft can help a person avoid becoming a victim or, if they already are, getting arrested for crimes they didn’t commit. The signs are there, people just have to take the time to see them.

Similar Essays

What Is Credit Card Fraud? Essay

1187 words - 5 pages Credit card fraud is highly publicized in this era and you should know what it looks like. This is the most common and simplest form of identity theft. All it would take is having someone else’s name, address, date of birth, and social security number. With all the pertinent information on a person one can get loans, and open new bank accounts. Also, someone could use the person’s existing bank account. Just about anything can be accomplished

Credit Fraud Overviwe Analysis And Recommendations

1596 words - 6 pages Credit card fraud is a significant problem in the U.S. with losses exceeding $5.718 billion annually (Sullivan, 2010). Perpetrators are continually developing new methods to circumvent established and evolving fraud prevention controls. With economic expansion continuing its advance into the digital era and electronic forms of payments increasingly common, the problem of credit card fraud is likely to increase. Internet-based credit card

Fraudulent Banking: Where’s My Money? Essay

1865 words - 7 pages Every day we make purchases, use our credit cards, write checks, and shop online. Money becomes bigger each day and so does greed. As technology continues to improve and change over the years, so has banking fraud. Despite banks and businesses finding new ways to protect their customers from fraud, it still occurs all around the world. The main types of fraud can be classified as check fraud, credit and debit card fraud, identity theft, and

E Commerce Fraud Essay

2118 words - 8 pages information such as name, address and credit card numbers. Microsoft Internet Explorer 2.1 and Netscape Navigator 2.0 support SSL. SSL sites are notated by an unbroken lock or key icon. ”SSL can now use a 128-bit key so it’s very secure and reliable (Harvey, website).” Major credit cards are also getting involved to protect their customers account information and reduce their exposure to credit card fraud. Companies such as MasterCard, American