Credit card fraud is one of many forms of fraud involving credit cards, charge cards, debit cards, or prepaid cards. Action to be done to prevent credit card fraud for any company Credit card fraud is a kind of fraud where a merchant (business, service provider, seller, etc.) is "tricked" into releasing merchandise or rendering services, believing that a credit card account will provide payment for goods/services. The merchant later learns that they will not be paid, or the payment they received will be reclaimed by the card's issuing bank.
Typically, the fraudster causes a credit card of another person to be charged for a purchase. Today, half of all credit card fraud is conducted online, meaning that the fraudsters make online purchases with the credit card details of other people.
Types of Fraud
===Mail Non-Receipt Fraud=== Mail non-receipt fraud occurs when a thief intercepts a replacement card sent to the legitimate cardholder and uses it. However, many banks increasingly send out inactive cards that cannot be used until the legitimate account holder confirms his or her identity to the bank using Social Security number, home address, mother's maiden name, and the number on the card.
Chargebacks occur when a cardholder's credit card details are used to purchase items without their authorization. This generally involves online companies, who often cannot verify that the person entering the details on their site is the actual cardholder (i.e. Card-Not-Present activity). When the cardholder becomes aware of the activity they usually notify their bank, who are likely to refund almost all of the costs. These costs are then passed back to the company involved as a "chargeback", effectively a penalty for accepting the transaction without proper verification of the purchaser's identity.
No comments:
Post a Comment