Credit card frauds


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Credit card frauds

  1. 1. Credit Card FraudsModern Day Pick pocketing…
  2. 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. 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. 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. 5. 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.
  6. 6. • 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
  7. 7. 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.
  8. 8. • "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 Birlas 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 isnt 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.
  9. 9. Know your Card well
  10. 10. Understanding of root cause:
  11. 11. Save Yourself!!DOs DON’TsIf you lose your credit card, please report Please do not disclose your Credit Cardthe loss immediately. Number/ATM PIN to anyone.When you dispose of a card at the time of Please do not hand over the card torenewal/upgradation, please make sure anyone, even if he/she claims toto cut it diagonally before disposal. represent the Bank.Please keep your card in a safe place. Never get carried away by strangers whoTreat 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 thepresence. card or on a paper which you carry along with the card.Please make sure you conduct any ATM Hand over your phone with activatedtransaction in complete privacy. If your banking services to anybody.card is held back by the ATM, pleaseinform the concerned Call Center/Branchpersonnel immediately.
  12. 12. Before you use an ATM, please ensurethat there are no strange objects in theinsertion panel of the ATM. Pleaseremember to take your Debit/Credit Cardback after completing your ATMtransaction.If you spot any suspicious looking peopleat or around any ATM, please inform thesecurity guard immediately.Please change your ATM PIN once every 3months.