2. Definition and Meaning
• Credit card fraud 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: United
States, 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 Trade
Commission, February 2009 survey)
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 cards criminals use the 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 on to a
counterfeit card. Often, this is done with the help
of a bartender or a salesperson.
13. Save Yourself!!
DOs DON’Ts
If you lose your credit card, please report Please do not disclose your Credit Card
the loss immediately. Number/ATM PIN to anyone.
When you dispose of a card at the time of Please do not hand over the card to
renewal/upgradation, please make sure anyone, even if he/she claims to
to cut it diagonally before disposal. represent the Bank.
Please keep your card in a safe place. Never get carried away by strangers who
Treat it as carefully as you would treat try to help you use the ATM machine.
your cash.
Please ensure the card is swiped in your Please do not write the ATM PIN on the
presence. card or on a paper which you carry along
with the card.
Please make sure you conduct any ATM Hand over your phone with activated
transaction in complete privacy. If your banking services to anybody.
card is held back by the ATM, please
inform the concerned Call Center/Branch
personnel immediately.
14. Before you use an ATM, please ensure
that there are no strange objects in the
insertion panel of the ATM. Please
remember to take your Debit/Credit Card
back after completing your ATM
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.
