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 with someone else’s information. Simple and thought to be unimportant information could turn out to be very valuable information to a person doing credit card fraud or identity theft.
A simple definition of credit card fraud is illegally obtaining goods, funds, or services deceptively. The amount of time for this type of fraud to be discovered can vary. Credit card fraud, better known to others as identity theft, can cause great turmoil in a person or family’s life by taking away their sense of security. Credit card fraud does not mean, necessarily, that a person has to have the card; the only thing a person really has to have is the card number, expiration date, and the three-digit card verification number on the back with the card holder’s name. In most cases of credit card fraud the person committing the fraud actually knows the person quite well and the address to where the bill is sent.
With all of this being said, when it comes to you or your family’s finances be careful. Someone you think you know and trust can very easily steal your credit card information, or even personal information to use for his or her own personal gain. Credit card fraud is just as simple as ordering things over the Internet or the phone. A person can make a copy of your card and use it with few, or no, questions asked. Fraudulent use of a credit card has become a popular way of theft because it is much simpler and convenient. I guess that is why credit card fraud is still considered a white-collar crime and an increasing way of theft.
Convenience is why most people are defrauded. The reason I make this statement is because most would choose to pay a bill or buy something over the Internet verses actually going to the store to make a purchase. The Internet is not the safest source to make a purchase or to pay bill, because of people using fake websites to gain personal information to access your credit card information. Credit card fraud and identity theft go hand in hand; but to commit credit card fraud you would need to know a few personal information, and having someone else’s information constitutes as identity theft. However, when a person is arrested for credit card fraud they are not charged with identity theft, but in my opinion the person should have been charged for both.
Some things a person should never do is leave important documents lying around, or throwing away bills that may have personal information on them without shredding them, or allowing someone to use your card for any reason. People that...

Find Another Essay On What Is Credit Card Fraud?

E-Commerce Fraud Essay

2118 words - 8 pages through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account.” What this means is that any transaction not performed on paper is subject to regulations under EFTA. This also includes paying for goods with a credit card in a brink and mortar store, since the credit card is authorized by an electronic terminal. Credit card fraud

Credit Cards Essay

2304 words - 9 pages limit. This is where a credit card company really can get you. Late charges are around $25, cash advances are double what the Periodic Rate is, and some companies have a minimum charge on the card whether you use it or not (Choosing and Using Credit Cards). You should also know the balance computation method of the card you want. The Average Daily Balance is the most common calculation method. It credits your account the day a payment is received

Credit Cards: A Blessing and A Curse

1902 words - 8 pages In the world today, when the average American is standing at the cash register, ready to pay, he or she will likely pull out of their wallet one of the following: Visa, MasterCard, American Express, or a Discover Card. What do all of theses names have in common? They are all credit cards, the easy, fast way to pay for purchases when you don’t have cash, the store doesn’t accept checks, you would rather pay at a later date, or a variety of other

Identity Theft

889 words - 4 pages Identity Theft This paper will cover the topic of identity theft via the internet, phone and several other schemes. It will identify various ways in which your identity is stolen and ways which you can safeguard yourself from being victimized. I will also report what the Department of Justice is doing and the penalties associated with these crimes.      Identity fraud is use of a persons name, social security number

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 cards that are commonly used for cashless transactions. First is the credit card which is a plastic token, with a magnetic stripe that contains the machine readable code. Credit cards are known as the most common substitute for cash payment. It is also commonly used for internet transactions. Credit card holders have their credit limit, whic has been approved by the card-issuer such as banks, stores and etc. Cardholders usually pay their balances

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

Yes or no to a credit card?

957 words - 4 pages some have difficulty paying for tuition and other things because “perform poorly academically, receive insufficient financial aid and have a low family income” (Leclerc).These factors lead students to apply for any type of credit card and easily getting it after being approved. Now, they have a credit card which gives the opportunity to pay for what is necessary at school. According to the experts, credit card debt in college student is already

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 thought when it comes to credit, which is what makes our society so vulnerable to identity thieves. There are usually clues given to a person that an identity theft has occurred and many people ignore the clues. One clue that someone is about to become the victim of identity theft is a missing a credit card statement. Most credit card companies send out statements around the same time each month. If the victim has an unsecured mailbox, as

Boots secures its Wellbeing

597 words - 2 pages against a number being used fraudulently if the card has not been stolen. To add further checks, Wellbeing turned to Texas-based ClearCommerce's Enterprise Merchant Engine an integrated fraud management system. Kevin Figgitt, third party operations manager at Wellbeing, says Enterprise Merchant Engine is very easy to use. 'You set up a number of rules. According to what the customer types in, it returns codes and you can decide what action to take

Similar Essays

Credit Card Fraud Essay

3314 words - 13 pages , the credit card holder whose card is misused and the merchant who unknowingly processed fraudulent orders who probably suffer when card holder raise grievance. Card not present orders are also less likely to be investigated as there are no red flags to distinguish stolen orders from legitimate one. Application Fraud Application fraud is one precise form of what is generally mentioned to as “identity theft.” As the name suggests, it

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 because they are giving random people access to your personal information, which is a violation to your right of privacy.Smart Cards are plastic cards similar to credit cards. The main difference is that these cards have a computer chip embedded into it. The computer chip is what makes the card "smart" and its encryption on the chip that makes it secure. With the rise of Identity Fraud in the United States due to "the internet and the ability to

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 play (“Check Fraud Prevention,” sec. 4). Credit/Debit Fraud Credit and debit card fraud is not very common today, but there are still cases of it. Credit and debit fraud is the result of someone illegally obtaining either a credit/debit card or just the information to make purchases. It also can be the use of one’s own credit/debit card knowing there is not sufficient funds in the account. Making transactions using a credit/debit card and