5 Reasons Credit Card Fraud Still Exists

Credit card fraud isn't exactly new, but compared to the long existence of the credit card

, it is something that people never thought they would have to deal with. In fact, credit card fraud has only been tracked since 2003 in professional statistics. But what is credit card fraud and why does it still exist?

Lack Of Security

Sure, websites, retail stores and computers all have some level of security. But these locations where credit cards can be used are run by people that develop security programs to hide your information from prying eyes. When there are security gaps a clever hacker can easily access whatever information comes through the system. A great example of a massive credit card security flaw was when the Playstation Network was hacked. Hundreds of thousands of credit card numbers were compromised.

Careless Users

Too many credit card users believe that they are invincible and their identity cannot be stolen. Users make themselves available to credit card fraud scams by sharing too much information or using their card number on just any website. Credit cards should actually be used with care and consideration for where you are shopping. Another reason is that more users are withdrawing cash from ATM's instead of going inside a bank to withdraw money they need. This is problematic due to the influx of credit card skimming devices.

Online Shopping Makes It Easy

This isn't to say that you should never shop online again, but it does make credit card theft easy. Credit card fraud costs are getting higher each year as more people shop online and also get their information stolen online. A hacker that wants your information can easily take it. Website developers that don't use secure payment methods or checkouts also leave open vulnerability for those shopping with their credit card online.

Shopping online can be safe and generally is. When you make an online purchase always be sure that the checkout is secure. Typically if it has a golden lock or security certificates on the site, it is a certified safe site for online shopping.

The Economy

The struggling economy opens more doors for desperate criminals to participate in fraudulent activities. Credit card statistics show that as the economy went downhill, fraud went up. This is an unfortunate side effect of a struggling and fragile money system. It takes almost no work to steal someone's credit card information, but it can bring in a lot of cash if you aren't caught. This appeals to those criminals that want to hurt others for personal gain.

Not Enough Complaints Are Filed

Credit card numbers are still stolen today because not enough people report identity theft when it happens to them. Statistics show that out of all victims of fraud only 50% of them report their losses and file a police report. The rest deal with it off the record or don't even know it has happened to them. This is a major problem for those fighting to put an end to fraud. If more people filed reports then the police would have a reason to crack down on security. Technically, fewer reports are being made so they don't realize what an impact fraud has on the country.

by: Gen Wright

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