2. Introduction and
Meaning
• Creditcardfraud is a wide-
ranging term for theft and
fraud committed using a
credit card or any similar
payment mechanism as a
fraudulent source of funds
in a transaction.
• The purpose may be to
obtain goods without
paying, or to obtain
unauthorized funds from
an account.
• Credit card fraud is also
an adjunct to identity
theft.
3. Hard
Facts
• "Lost or stolen wallets, checkbooks and credit and
debit cards" made up 43 percent of all ID theft
incidents in which the "method of access" was known.
(Source: Javelin Strategy & Research, February 2009
study.)
• Credit and debit card fraud is the No. 1 fear of
Americans in the midst of the global financial crisis.
Concern about fraud supersedes that of terrorism,
computer and health viruses and personal safety.
(Source: Unisys Security Index: UAE, March 2009)
• Arizona leads the nation in identity theft complaints
per 100,000 people. In 2008, the state had 149
complaints about ID theft per 100,000 people.
California
(139.1), Florida (133.3), Texas (130.3) and Nevada
(126.0) rounded out the top five. (Source: Federal
4. • South Dakota has the fewest identity theft
complaints per 100,000 people in the nation. In
2008, the state had 33.8 complaints about ID
theft per 100,000 people. North Dakota (35.7),
Iowa (44.9), Montana (46.5) and Wyoming (46.9)
rounded out the bottom five. (Source: Federal
Trade Commission, February 2009 survey)
• Brownsville-Harlingen, Texas, is the metropolitan
area with the largest number of ID theft
complaints per 100,000 people. In 2008, the
area had 366.8 complaints per 100,000 people.
Napa, Calif., was second with 351.3. (Source:
Federal Trade Commission, February 2009
survey)
5.
6. Types of
Frauds
• 1. Counterfeit credit card
Makes up for 37% of all funds lost through credit card frauds. To
make fake cardscriminals usethe newest technology to “skim”
information contained on magnetic stripes of cards and to pass
security features such as holograms
• 2. Lost or Stolen Cards
Cards stolen from their cardholders or lost by them account for
23% of all card frauds. Often, cards are stolen from the workplace,
gym, and unattended vehicles
• 3. No-Card Fraud
Comprises 10% of all the losses and is completed without the
physical card in hand. This can happen by giving your credit card
information on the phone to shady telemarketers and deceptive
Internet sites that are promoting the sales of their non-existent
goods and services.
7. • 4.Non-Receipt Fraud
Is responsible for 7% of all losses. It
occurs when new or replaced cards mailed
by your card company are stolen during the
process of being mailed.
• 5.Identity Theft Fraud
Accounts for 4% of all losses, and
occurs when criminals apply for a card
using someone else’ identity and
information
8. Case
Study
• In what is seen as a problem that
could affect the aam aadmi,
estimates show that Rs 8.2 crore is
lost annually in India due to credit
card fraud. From Kumar Mangalam
Birla to the aam
aadmi, there have been all
sorts of victims.
• Ram Shanker Shukla from Lucknow
got the biggest surprise when he
recieved SMS alerts saying Rs
20,000 were deducted from his
bank account and that too, to pay
utility bills in Delhi and Jaipur. By
the time he realised it, Shukla had
become the latest victim of online
fraud.
9. • "It must be the job of a hacker because I
have never used a public computer nor
have I shared the financial details of my
card with anyone," Shukla said.
• Not just Shukla, recently, industrialist
Kumar Mangalam Birla's credit card was
reportedly cloned and used to make a
purchases worth Rs
2.8 lakh in Bangalore, while Birla was in
Mumbai.
• The crime isn't that difficult to pull off. The
first way is by cloning or skimming your
credit
card, where all the details are obtained
through a pager-sized scanner and copied
13. Save
Yourself!!
DOs DON’Ts
If you lose your credit card, please
report the loss immediately.
Please do not disclose your Credit
Card Number/ATM PIN to anyone.
When you dispose of a card at the
time of renewal/upgradation, please
make sure to cut it diagonally before
disposal.
Please do not hand over the
card to anyone, even if he/she
claims to represent the Bank.
Please keep your card in a safe
place. Treat it as carefully as you
would treat your cash.
Never get carried away by strangers
who try to help you use the ATM
machine.
Please ensure the card is swiped in
your presence.
Please do not write the ATM PIN on
the card or on a paper which you
carry along with the card.
Please make sure you conduct any
ATM transaction in complete privacy.
If your card is held back by the ATM,
please inform the concerned Call
Center/Branch personnel
immediately.
Hand over your phone with
activated banking services to
anybody.
14. BeforeyouuseanATM,pleaseensure
that there are nostrangeobjectsin the
insertionpanelof the ATM. Please
rememberto take yourDebit/CreditCard
backafter completingyourATM
transaction.
If you spot any suspicious looking
people at or around any ATM, please
inform the security guard
immediately.
Please change your ATM PIN once
every 3 months.
