4. What is a Credit Card ?
A plastic card issued by a Bank or Business for
the purchase of goods on credit.
Credit cards are the most often used electronic
payment instrument.
5. What is Fraud ?
Fraud is intentionally deceiving someone resulting
in financial injury to to that person.
6. What is Credit Card Fraud ?
A form of IDENTITY THEFT, that involves the misuse of
a person's credit card information or the use of a
counterfeit card.
7. What is Credit Card Fraud ?
Persons use the information for the purpose of charging
purchases to the account or removing funds from it.
10. The Implications of Credit Card
Fraud
Inability to get loans and financial assistance due
to bad credit, especially in countries like America.
11. The Implications of Credit Card
Fraud
Persons can be imprisoned due to their inability to
pay their “creditors” obtained due to credit card
fraud
12. The Implications of Credit Card
Fraud
Banks, too, lose Money.
After they've allowed a Million dollar limit on a
credit card, and that limit is reached, and they're
not able to recieve payment from the Credit Card
signatory, then they have to be written off as a
bad debt, which is an expense to the card
company.
14. Misuse of Information
With credit card fraud, information is taken from
the victim and used by the fraudster without
authorization from the victim.
16. Advantages of Credit Cards
Quick way to Borrow
If you need to buy something expensive and you
can’t afford to pay for all at once, a credit card is
ideal. If you don’t have the cash at hand or even
in your bank account you can pay with a credit
card and then spread the cost over a number of
months.
Credit cards are also an easy and secure way to
pay for internet shopping. Plus, they are widely
accepted around the world.
17. Advantages of Credit Cards
Consumer Protection
You get more protection if you pay with a
credit card than if you pay with a debit card,
cash or cheque. In other words, if the
company goes bust, or your purchase is faulty
or doesn’t turn up, you won’t lose out because
you can claim the money back from your
credit card provider.
18. Advantages of Credit Cards
Card-Use Incentives
−
Some credit cards offer 0% periods meaning
you can effectively benefit from an interestfree loan. You need to clear your balance
before the 0% offer ends though otherwise
you’ll be charged interest. The average
interest rate is 18% - that’s quite high which
is why you should pay your debt off before
interest kicks in.
19. Advantages of Credit Cards
Card-Use Incentives
− Some cards even offer incentives to spend,
such as cashback, loyalty points or Air miles,
which means you could actually make money
from your credit card. These are only
worthwhile if you pay your bill in full otherwise
the interest you’ll be charged will be more
than the value of the rewards.
20. Disadvantage of Credit Cards
Blowing your Budget
– The biggest disadvantage of credit cards is
that they encourage people to spend money
that they don't have. Most credit cards do not
require you to pay off your balance each
month, so even if you only have $100, you
may be able to spend up to $500 or $1,000
on your credit card. While this may seem like
'free money' at the time, you will have to pay it
off and the longer you wait, the more money
you will owe since credit card companies
charge you interest each month on the money
you have borrowed.
21. Disadvantages of Credit cards
High Interest Rates and Increased Debt
Credit card companies charge you an
enormous amount of interest on each balance
that you don't pay off at the end of each
month. This is how they make their money
and this is how most people in the World get
into debt. . A good way to look at this is in
comparison to what you would earn in interest
from a bank or owe in interest to a bank loan:
Savings accounts may pay you around 2%
interest; if you have a loan from a bank you
may pay them around 10% interest; if you
owe money to a credit card company, you
may pay them around 20% interest.
22. Advantages of Credit Card Fraud
Revenue for the Fraudster
The Fraudster, with his new source of income will
have sufficient revenue to enjoy his day to day
life, that may be better than most. As well as,
finance bigger schemes.
23. Advantages of Credit Card Fraud
Relief of Debt
Persons who are heavily indebted might go to
“Credit Doctors”, where they can obtain stolen
credit cards they use to pay off their debts.
24. Advantages of Credit Card Fraud
Exploitation of Intelligence
The persons investing their time in Credit Card
Frauding Schemes are usually those who are
highly intelligent. This frauding medium gives
them an oppurtunity to build on their skills and
develop it to perfection.
25. Disadvantages of Credit Card Fraud
Accrued fees are payable by the victim
The fees it takes to investigate your fraud, along
with the fee for losing the card are payable by you
to the bank.
26. Disadvantages of Credit Card Fraud
Indebtedness
A victim becomes heavily indebted, sometimes
bankrupt because of credit card fraud.
27. Disadvantages of Credit Card Fraud
Bad Credit Score
Victims, unable to pay their debt will, as a penalty,
see an increase in their credit score. This will
result in them not being able to get loans etc..
29. Types of Credit Card Fraud
Online Credit Card Fraud
The lack of interaction, over the Internet provides
fraudsters with anonymity, so they've become
more daring. They have even gone to the lengths
of posting stolen credit card numbers online,
making it accessible to anyone.
30. Types of Credit Card Fraud
Misuse by Family Members
Family members sometimes use a victim's credit
card, without permission. They are also
sometimes sold to thieves.
31. Types of Credit Card Fraud
Organized Crime Rings
Nigerian crime rings are most popular for acts of
Credit Card Fraud. They steal Bank and Credit
Card information from the mail and then use it to
create fraudelent identification cards, drivers
licences and ..
Credit Cards
32. Types of Credit Card Fraud
Advance Payments
Consumer regulations request that a person's
account is immediately credited, even before the
cheque has cleared.
Using counterfeit cheques, an advance may be
made on a Card's account before their is time to
verify the authenticity of the cheque.
33. Types of Credit Card Fraud
Stolen Card Numbers
Numbers may be stolen using “Shave and Paste”.
Old card numbers are removed, and the numbers
of the victim's card placed on this card.
34. Types of Credit Card Fraud
Stolen Card Numbers
“Counterfeit Cards” this is normally done in
conjuction with an employee. Basic white plastic
cards, are designed and decorated with a victim's
card info and then te fraudster goes in the store
and uses it with the employee like an average
credit card.
35. Types of Credit Card Fraud
Telephone/ Mail Order Fraud/ Lotto Scam
Fraudsters will offer a Free Trip, or a significant
some of money that the victim has won. Before,
however, the victim can collect on their prize, they
must first pay a “handling” fee. The victim will give
the fraudster their credit card number and then
the fraudster charges purchases to the victim's
account.
36. Types of Credit Card Fraud
Telephone/ Mail Order Fraud/ Lotto Scam
Also, fraudsters may select a random person from
the phonebook and then pretend to be a
representative fm a popular car company. They
will report to the victim that their card has been
obtained by criminals. They are then asked to
read their credit card number for verification.
Many persons fall for this scheme, Will You ?
37. Types of Credit Card Fraud
Mail Theft
Victim's may apply for a new credit card from the
book, and request that it is sent via mail. It may
then be obtained for use by those that check the
mail at the post office. If it does pass this byway
safely, it may then be obtained by criminals who
check people's mail boxes for such documents.
Like the Nigerians.
38. Types of Credit Card Fraud
Credit “Doctors”
Persons with bad credit that can't obtain a proper
credit card from the proper Financial Institutions
often go to “Credit Doctors” to obtain stolen credit
cards. Though some patients of these Doctors are
ignorant of how they obtained these cards, most
are knowledgable of the situation.
39. Types of Credit Card Fraud
Account Takeover
The fraudster may pretend to be the owner of the
card, and request a change of Address.
They may report the card lost or stolen and ask
that the new card be sent to the new address.
They will then use it to make purchases, while the
amount is still being charged monthly to the
victim's account.
40. Types of Credit Card Fraud
Other Forms of Credit Card Fraud
False Applications
True Name Fraud
Non – Receipt Fraud
Creditmaster
Probing
Skimming
Pre – text calling
52. Where does Credit Card Fraud
happen ?
Persons can be victimised by simply having their
credit card in their back pocket, where it can be
scanned and its information read.
54. Strategies to overcome Credit Card
Fraud
Privacy
Instituting, in public areas, private spaces where
one can safely carry out a transaction using credit
cards
55. Strategies to overcome Credit Card
Fraud
Magnetic Wallets
Persons can invest in magnetic wallets that
prevent the scanning of credit card information by
blocking the signal.
56. Strategies to overcome Credit Card
Fraud
Proper Identification
Proper Identification of persons can help in the
reduction of credit card fraud. This will reduce the
possibility of persons who dont own the credit
card using the credit card
57. Strategies to overcome Credit Card
Fraud
Adequate Surveillance
Constant monitoring or surveillance of places
where credit card card fraud occurs most often.
So if fraud were to occur, the suspect could easily
be caught.
59. Strategies to overcome Credit Card
Fraud
Prevention.
Truthfully, if people were more responsible and
careful with how they handle their credit card and
their credit card information, it would be harder for
fraudsters to obtain information.
60. Strategies to overcome Credit Card
Fraud
Education.
Tellers could be properly educated on how to
recognize a legitimate credit card, and be to
identify all the security features of a legimitate
credit card. The chances that a fraudulent card
would contain all these security features is very
rare.
61. Strategies to overcome Credit Card
Fraud
Financial Institutions developing relationships
with Law Enforcement.
If there are proper relationships established
between these Financial Institutions and Law
Enforcers, with their is evidence of credit card
fraud present, it may be easily and quickly dealt
with.
62. Strategies to overcome Credit Card
Fraud by the Financial Institutions
New Account Screening
Ensure that Institution's employees thoroughly
check and ensure that information is accurate.
63. Strategies to overcome Credit Card
Fraud by the Financial Institutions
PIN Activation
Credit Card Holders are normally required to
provide their PIN if they chose to activate their
credit cards over their phone. If they fail to provide
this PIN, they cannnot activate their card over the
phone.
64. Strategies to overcome Credit Card
Fraud by the Financial Institutions
Smart Cards
Instead of using holograms, smart cards use
microprocessor memory chip. This means that
unless the signatory is holding the card, in can't
be used. It also works with a PIN. Purchases
cannot be made without entering this PIN.
