Types Of Credit Card Fraud

Credit card fraud is an unfortunate reality that can put consumers deep into debt and can ruin the integrity and success of a business

. Reducing the risk of credit card fraud is extremely important, and regulations have been put into place to ensure that business owners and merchants follow the required security standards to keep sensitive information protected from fraud. Whether swiping credit cards at a fine dining establishment or accepting credit card numbers through e-commerce payment gateways, using certain security features can help detect credit card fraud and keep customers and businesses safe. Understanding the types of credit card fraud can also help protect personal information. Below, learn about the different forms of credit card fraud, such as counterfeiting, identity theft and phishing scams.

Counterfeit:

Counterfeiting is a common type of credit card fraud that requires copying the information within a real credit card's magnetic strip. This information is then used to create fake credit cards used for fraudulent activity. Counterfeiting often involves Canadian credit cards, as these can be more difficult to recognize. The ability to recognize a counterfeit card is crucial to detecting fraud. There are certain details that merchants and card holders can look for in order to tell if a card is fake or not. For example, features that are difficult to replicate, such as standard specifications regarding color, style and tint of the card, can reveal a counterfeit credit card.

Identity Theft:

A thief can steal your identity with access to your driver's license, Social Security number or credit card information, using your name to open new credit card accounts and bank accounts, set up bill payments, and even get a job. Identity thieves can gain access to your sensitive information in a variety of ways, including going through your trash for non-shredded documents, rummaging through your home in search for personal information, or posing as someone else, such as a bank or credit card company, to get a hold of your data. Data breaches, which involve hackers breaking into a business' system and accessing stored credit card information, can also lead to identity theft. In order to reduce the risk of identity theft, both consumers and merchants must take the right precautions to protect sensitive information. Consumers should keep important documents safe and shred documents before throwing them away, while credit card merchants must comply with PCI standards and implement the appropriate security features to keep information safe.

Phishing:

Another form of credit card fraud is phishing, which involves using fake e-mails and Web sites to obtain credit card information. Phishing e-mails and Web sites are often designed to look like legitimate organizations or institutions. The phishing scam deceives victims by posing as real banks, agencies or other familiar companies and asking for sensitive information, from credit card numbers and personal identification numbers to passwords and account numbers. Victims click on links embedded in the e-mail or Web site and provide their information, which is then used for fraudulent activity. In order to avoid phishing scams, consumers and business owners should always be suspicious of e-mails and Web sites that request personal information. Banks and credit card companies rarely ask for PINs and passwords. Instead of responding to such e-mails, contact the alleged sender to confirm the request.

by: Julie Henaghan

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