This document discusses credit card fraud and identity theft. It provides an overview of common types of fraud like unauthorized charges, counterfeit cards, and identity theft. It explains how fraud occurs through lost or stolen cards, diverted mail, or employees stealing information. The document also discusses the impacts of fraud, costs to consumers and businesses, and steps people can take to protect themselves like shredding documents, being wary of phishing emails, and monitoring accounts closely. It provides examples of fraud cases and statistics on identity theft from a Norton report.

1. Credit Card Fraud

2. Overview of Topics
• Recognizing types of Credit Card Fraud
• Protecting yourself from fraud
• Steps to take when fraud strikes
• Resources & referrals

3. Credit Card Fraud
● Unauthorized charges to your credit card
● Counterfeit cards

4. Credit card fraud can occur when
● Cards are lost or stolen
● Mail is diverted by criminals
● Employees of a business steal customer information

5. Why does credit card fraud matter?
● The Federal Trade Commission estimates that 10 million people
are victimized by credit card theft each year
● Credit card companies lose close to $50 billion dollars per year
because of fraud
● These costs “trickle down” in higher interest rates and fees for all
consumers

6. The bottom line...
● All cardholders pay for credit card fraud losses
○ Victims spend time and money to repair the damage
○ Credit card issuers charge higher fees and interest rates to
cover their losses

7. ID Theft
● Identity theft is the use of someone’s personal information, such
as their Social Security number or date of birth, to commit
financial fraud

8. ID thieves harm victims by:
● Using their names and other personal information to open new
credit accounts
● Accessing existing credit and bank accounts to make unauthorized
purchases
● Victims of ID theft are not held liable for losses, but it takes time and
effort for victims to prove fraud and clean up the chaos

9. Forms of Fraud
● Dumpster Diving
○ Stealing credit card information from discarded receipts or
account statements in people’s trash
○ Shred unwanted documents that contain Social Security
numbers, bank and credit card information and other sensitive
financial information

10. Skimming
● When dishonest employees make illegal copies of credit or debit
cards using a “skimmer” device that captures credit card numbers
and other account information
○ The stolen credit information is used to make purchases by
phone and internet, or to make counterfeit cards

11. Phishing
● Phishing is a financial crime that starts with massive numbers of
deceptive spam e-mails
○ These e-mails look like they come from your bank
○ But they are just a trick to get account numbers and passwords

12. Security Codes
● Credit card companies use security codes to help prevent
unauthorized or fraudulent use by phone and online
○ These numbers help ensure that you have the card — not just
the account number
● Merchants are prohibited from keeping or storing any security
codes after transactions are completed

13. Security Codes
● Security codes for Visa, MasterCard and Discover cards are the 3
digits located on the back of the card in the signature box.
● Security codes for American Express are 4 digits long, printed on
the front of the card above the right side of the main credit card
number.

14. New Cards
● For added protection, credit card issuers ask you to call from home
to activate new credit cards
● As soon as you receive your new card, sign the back of it with a
permanent black ink pen

15. In case your card is lost or stolen
● Record all your account numbers and company contact information
and keep the record in a secure place
● That way you can easily find whom to call to report the loss

16. Protect your PIN
● Never write down your personal identification number (PIN)
● Never give your PIN to anyone

17. Protect your account numbers
● Never write your credit card number on post cards or on the
outside of envelopes
● Never provide your card number on the phone, unless you know
it’s a legitimate, reputable business
● Never give your account number to anyone who calls you on the
phone or sends you an e-mail
● If you let others use your card, you are responsible for charges

18. Billing Statements
● Review credit card statements closely on the day they arrive
○ Report any questionable charges to your card issuer
immediately
● A missing credit card statement may indicate stolen mail
○ Contact your card issuer right away if your bill doesn’t arrive
around the usual date

19. Online account access
● If you have a computer, consider signing up for online account
access
● This way you can track your account activity between
statements

20. Reduce your risk
● Read your bank, credit and account statements, and
Explanation of Medical benefits.
● Look for charges you didn’t make.
● Be alert for bills that don’t arrive when you expect them.
● Follow up if you get account statements you don’t expect.

21. Liability
● Fraud victims are not generally required to pay for unauthorized
charges
● Victims may be liable for up to Rs1000 of the loss, depending on
the circumstances

22. Protect your wallet or purse
● Keep a close eye on your belongings
● Never carry all your credit cards
● Bring only the 1 or 2 cards you might need
● Carry your credit cards separate from your wallet
● If your wallet or purse is lost or stolen, call your credit card
issuers immediately

23. Watch your credit card
● Watch closely when store or restaurant employees handle your
card to make sure they are not copying or “Skimming” your credit
card number
● After you make a purchase and your card is handed back to you,
make sure the card is yours.

24. Take precautions
● Notify your credit card company if you are going to be traveling
away from home to prevent any inconvenience if your issuer
should block your account from being used in a different city
● Notify your credit card company if you are going to make any
unusually large purchases so that your account is not flagged for
possible fraud

25. Safeguard your mail
● Notify the post office and your credit card company immediately if
you change your address
● Lock your mailbox. Never leave mail in an unlocked mail box or
apartment building lobby
● Put your return address on out-going mail
● Shred unwanted credit card solicitations before discarding

26. Internet Safeguards
● If you bank online, don’t use “automatic sign on” for bank or credit
card sites
● Avoid providing your credit card number to websites offering “free
access”
● Install a firewall in your computer to prevent unauthorized access
from hackers

27. Reporting credit card fraud
● To report credit card fraud
○ Call your card company immediately about
■ Lost or stolen cards or PIN numbers
■ Unauthorized charges on your statement
○ Request a fraud affidavit
○ Get a police report if necessary

28. Disputing charges
● Always dispute billing errors in writing. You can call your card
company and follow up with a letter.
○ Describe the dispute in a few sentences
○ Send it to the correct address for billing disputes
○ Do not include your dispute letter with your bill payment

29. Case-Study #1
● A russian hacker, Roman Seleznev
● A $50 million online identity theft case
● He created a website where he sold stolen credit cards and
identity data, for which he was sentenced 14 years in prison

30. Case-Study #2
● Just a year later $3.5 million was
extorted by Kenneth Gilbert Gibson,
who using stolen identities created
more than 8000 fraudulent online
accounts with PayPal.
● The police discovered in his office
computers that were running an
automatic script to open up online
accounts.

31. Case-Study #2
● He stole the data from employees and customers of the
company that he worked for.
● To avoid detection he only moved small amounts of money,
which did not raise any red flags with the financial institutions.
● Many of his victims didn’t realise that their identity was stolen
until they tried to get a loan, or were contacted by the
authorities or collection agencies.

32. Case-Study #3
● In 2014, Kim Kardashian had also been the victim of an identity
theft. 19-year-old Luis Flores, Jr. called the credit card company
American Express claiming to be Kim Kardashian and changed
her social security number and address to his own, so that he
could receive new cards.
● He had private information of several celebrities and politicians
such as Bill Gates, Michelle Obama, Joe Biden and Beyoncé.

33. Case-Study #3
● During the investigation he was also linked to cases involving
frauds against the U.S. Marshals Service Director Stacia Hylton
and former FBI director Robert Mueller.
● He was sentenced to three-and-a-half years in federal prison.
The information of the victims were posted online and probably
gathered by hackers.

34. Case-Study #4
● A few months back a police complaint was lodged by a private
employee, Naveen Jyothi, saying that his personal details were
used by fraudsters to avail a credit card from State Bank of India
in his name.
● Fraudsters had spent Rs 88,654 using the credit card.

35. Case-Study #4
● Police conducted the investigation and the fraudsters who were
involved have been arrested.
● Fraudsters had created a fake salary slip of private employees,
along with the forged voter ID cards and they had obtained PAN
cards by taking attestation from M Moshe, deputy paramedical
officer, medical & health department.

36. Case-Study #4
● After obtaining all the documents, they used to open bank
accounts and avail credit cards.
● Fraudsters had obtained nearly 33 credit cards from State bank of
India and cheated the bank to the tune of Rs 36,83,509 just by
misusing them.

37. Norton Report
● Around 45 per cent of Indian adults have experienced online
identity theft.
● About 63 per cent of Indian adults say that they feel more
vulnerable to cybercrime since the pandemic. The seemingly
vulnerable group consists of the older generation, with 60 per cent
among those aged 40+ confirming the fear.
● Over 2 in 5 Indian consumers have experienced identity theft to
date.

38. Identity theft
● Someone steals your personal information
● Uses it without permission
● Can damage your finances, credit history and reputation

39. How to know
● Mistakes on accounts or your Explanation of Medical benefits
● Regular bills go missing
● Calls from debt collectors for debts that aren’t yours
● Notice from the IRS (Indian Revenue Service)
● Calls or mail about accounts in your minor child’s name

40. How it happens
● Steal information from trash or from a business
● Trick you into revealing information
● Take your wallet or purse
● Pretend to offer a job, loan, or apartment to get your information

41. Reduce your risk
● Identity protection means treating your personal information with
care.
● Make it a habit.
○ like buckling your seatbelt, or
○ locking your doors at night

42. Secure your Data
● If someone asks for Adhaar or PAN, ask:
○ Why do you need it?
○ How will it be used?
○ How do you protect it?

43. Secure your Data
● Keep your important papers secure.
● Be careful with your mail.
● Shred sensitive documents.
● Don’t overshare on social networking sites.

44. Be Alert to Online Impersonators
● Be sure you know who is getting your personal or financial
information online.
● If a company that claims to have an account with you sends email
asking for personal information, don’t click on links in the email.
● Instead, type the company name into your web browser, go to their
site, and contact them through customer service.
● Or, call the customer service number listed on your account
statement. Ask whether the company really sent a request.