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Credit Card Fraud Essay

1502 words - 7 pages

Credit Card Fraud Some facts about credit card fraud: Credit cards. They are everywhere. They are so easy to use and they are accepted almost anywhere in the world. These are just some of the reasons why there is a big problem in the world today. This problem is known as credit card fraud.Credit card fraud is one of the most common types of fraud that there is. If a dishonest person gets a hold of any type of private information about someone, such as a social security number, date of birth, address, mother?s maiden name, etc., then that person could apply for and receive a credit card that is not rightfully theirs. This is called identity theft and goes hand in hand with credit card fraud. ...view middle of the document...

Some card numbers can be downloaded off of the Internet without the thief ever having to know or have contact with the victim. Another big problem with the Internet is the lack of security on web sites. Many of the sites claiming to be secure are not secure enough to protect consumers. This makes it easy to steal thousands of card numbers at one time from an online business. It also doesn?t help that several online companies keep credit card numbers in their databases that haven?t been used in years. Credit card thieves recently targeted and several thousand credit card numbers were stolen. Many past customers were in shock when they got their monthly statement in the mail and found fraudulent charges. Many of these customers filed complaints claiming that should have deleted their credit card numbers from their databases after a reasonable amount of time. So many numbers would not have been stolen if the company disposed of old card numbers.Another credit card scam that is also one of the newest is committed by help from a device called a skimmer. A skimmer is a black box that is about the size of a palm pilot with a slit down the front. When a credit card is swiped through the skimmer, the device reads and stores all of the data embedded on the card?s magnetic stripe. This data includes the name, number, and expiration date that appear on the card?s face, as well as an invisible, encrypted verification code that confirms the card?s validity from the card issuer. With this information, counterfeit credit cards can be produced that are identical to those ?real? cards that people carry around in their wallets.?Dumpster Diving? is also a possible way for a thief to steal a person?s credit card information. This is when thieves go through the trash in the dumpster and search for discarded credit card statements, receipts with card numbers, and any other document that may contain any type of credit card information. Many of the crooks that ?Dumpster dive? will also steal a person?s wallet or mail. This type of theft is possibly the easiest of all. Crooks can fill out applications in other people?s names and have the card and bill sent to an address that is at a vacant house. Thousands of dollars could be charged up before the credit card Company would discover the problem.The telephone is also a way for crooks to con people into divulging their credit card information. The elderly are a common target for this type of scam. Callers claim that the victim has won something such as a cruise or a new car and that they need to provide a valid credit card number to claim their prize. After the victim gives up the information and hangs up the phone, the crook uses that information to go on a shopping spree. The poor victim not even realizing what has happened.How to avoid becoming a victim of credit card fraud: A lot of the fraud that does occur is sometimes due to the carelessness and...

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