Fraud related to plastic currencies is increasing as their usage rises. There are many types of plastic currency fraud, including application fraud where a fraudulent person obtains a cardholder's information, forgery where a stolen card's information is changed, and selling charge slips from cancelled transactions. Forensic analysis is important for investigating plastic currency fraud through physical and instrumental examination. Various prevention methods can also help reduce fraud, such as signing cards, reporting loss/theft, and being wary of sharing personal details. Legislation in India regarding plastic currencies includes the Indian Penal Code, Negotiable Instruments Act, and Information Technology Act.

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FRAUDULENT
IN
PLASTIC CURRENCY
By,
Gopika Babu
1st
Year MSc. Forensic
science Lovely
Professional University

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Plastic currencies are the alternative to the cash or the
standard money. It was introduced in 1930 and now it is an essential form
of money. Plastic currencies are a very good example for the emerging
technologies in the world. It helps the human to walk into new world just
by a card.
As the use of plastic currencies are increasing, the fraudulent
related to plastic currency are also increasing. In the earlier times fraud
based on plastic currency was not a common problem. But situation
changed, as the technologies are emerging, the frauds related to them also
increases with it. Plastic currencies are convenient for every one for
shopping, money transfer like activities. But it will create big problems if
is used by wrong people.

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Plastic currencies are the hard-plastic cards
which are issued by the banks or an authority that provides certain rights
to the customer or the user, some of them helps to make payments,
entering into a secure area with many such other uses.
By introducing plastic currency instead of real
money, it should need more benefits than the use of real money. Plastic
currency has many characteristic features which make them unique. Some
of them are:
 It can’t be copied or modified.
 Privacy of the user will be protected.
 No third party is needed.
 Using plastic currency money can be transferred digitally to any
place.

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By the recent survey it came to know that use of plastic currency is
increasing. Even we can say it may come above the use of real money.
 7 to 8 million are using plastic currency in India. They are doing
about 8 million money transaction using cards all over India.
 In USA like developed countries about $7 trillion transactions are
doing using plastic currency.
In earlier times use of plastic currency are only done by private
commercial establishments. But now even government sectors are also
preferring online payments because they are easier and more convenient
to everyone.
There are different varieties of plastic currency available across the world
today. Some of them are:
1) Credit Cards 5) Store Cards
2) Debit Cards 6) ATM Cards
3) Smart Cards 7) Master Cards
4) Amex Cards 8) Charge Cards
All these cards not only help in money transfer as well as
help in many other things. For example, if we talk about credit cards and
debit cards, we know it helps for money transfer. But in the case of smart
cards it helps to access the medical and financial records.
These cards became more popular because of the security features
they had in them. It includes Hologram, ultraviolet features, magnetic
features like that. It keeps them unique. These security features are hard
to imitate.

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As the increased usage of plastic currency all over the
world, frauds related to them are also increasing. But it’s really different
from frauds related to real money. Unlike theft and robbery, this type of
fraud is entirely different from it. These types of fraud are done by the
person who have wide knowledge in current technology. But chances for
being caught is very less. Victims are usually ordinary citizens.
There are lots of types of frauds are related to plastic currency. Some of
them are:
All information about card holder can be obtained by the
fraudulent and he could be act himself as card holder in application fraud.
The original address of the card holder will be change with fraudulent
temporary address. Also, he can obtain the signature of the card holder by
saying print is not clear like excuses.
1.Application Fraud

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It can happen in the cases which merchant sold more than
one charge slip to same person at an interval of time. This will cause delay.
Charge slip will be sold to other merchants at a fixed rate. Then buying
person can fill any amount according to his own wish before submitting
it to his acquirer. But this type of fraud can’t trace easily.
In this type, when original card is stolen or lose, fraudulent
change the information in that card with new name, account number, and
convenient expiry date. But in these types of cases original signature will
maintain same, and the fraudulent will practice the signature and imitate
them in sale drafts and credit card transactions. In these type frauds, it
takes long time to detect the frauds and it’s useless if the damage is already
happened.
As we know technology is expanding, fraudulent will use
technology to make duplicate card of the original with same material the
original one was made, even replica of encoded magnet will also made in
it. These types of fraud can easily identify, because they do not follow the
manufacturing pattern of the original one.
2. Sold Charge sheet Fraud
3. Forgery
4. Duplicate Card

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Fraudulent will act as an employee of the acquirer and he will start
to work in terminal session of the acquirer. After somedays he will take
over the machine and replace it with another by finding faults in the
original machine. He will steal all the data from original machine and then
he will replace it back and disappears with all the data.
This type of fraud exists even before coming of internet. By the
coming of Internet, it becomes easier. What the fraudster is done is, he
will obtain and uses innocent victim personal and account details to obtain
money, credit service, anything which value from his card.
 After understanding about what is plastic currency and what are the
frauds related to plastic currency, the next step is to find how to detect
it and how to prevent it.
We can detect the fraud plastic currency by visual
examination or by examine the hologram. Because it provides security
against frauds related to them. It can also detect using computer software
like PRISM (Proactive Fraud Risk Management) and by using improved
5. Terminal Fraud
Detection and Prevention

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cryptography. Once it is suspected or detected the next step is
investigation,
 External and Internal Investigation
 In external investigation includes the involvement of
fingerprinting, handwriting experts, criminal investigation
agencies etc.
 In internal investigation it includes the involvement of Specialist
Fraud Investigation Team (Internal), Networking with
competitors, Internal intelligence Gathering and statistics etc.
The significance of forensic department in the investigation of frauds
related to the plastic currency is very important.
Here mainly two types of examination analysis are done for finding the
frauds in plastic currency. They are,
 Physical Analysis: - In physical examination thickness and
dimensions are measured using scales and gauge. Signature panel
and magnetic strip length will be also measured. Usually cards will
have the thickness of 0.76mm and length & breadth will be 85.60 x
53.98mm.
 Instrumental Analysis: - In instrumental analysis, under
stereomicroscope security features are analyzed and compared with
standards in 3D view. Under comparison microscope fine details of
card can be analyzed and compared at same time. Under video
spectral comparator (VSC) various features like Micro lettering,
Embossing, Engraving, Holograms and Images can be analyzed by
any of the infrared light, transmitted light or ultraviolet light.
How to recognize counterfeit cards?

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Mostly these types of cards are using mesh to transfer ink
into the substrate, because of this reason they will not look like the original
one. The signature panel area is even and can lift easily. In these type
cards logo is painted but real cards are printed.
Never write PIN number on card. Instead, it’s better to
keep PIN number to memory. Take credit card bills every month. All the
listed things in bills should be cross checked. Also, report if any mismatch
is found. Ask for receipt or duplicates after every transaction. After cross
checking, tear up and throw them. When a new or replacement card is
received, sign in back at the time of activation. Always store it in a safe
place. Cut up expired cards before disposing it. Don’t keep pin number in
wallet or like places. Try to keep in mind. Report immediately if card find
lost. Don’t reveal pin number, personal or account details to any other
person.
Most of the people are not aware about legislations related to plastic cards
in India. They are,
How fraudulent related to Plastic Currency can
be prevented?

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 Indian Penal Code, 1860
 The Negotiable Instrument’s Act, 1881
 The Consumer Protection Act, 1986
 Income Tax Act, 1961
 The Information Technology Act, 2000
 The Foreign Exchange Management Act, 1999
 Reserve Bank of India framework
From this we can concluded that Smart Card will be the future
of the world. Less number of point of scale terminals are the one of the
cause of increase in the frauds related to plastic currency.
The growth of plastic currency will be expected to increase 20-30%
per year. So, new protective features like fingerprinting, digital security,
computer chip is needed.
 http://www.bis.org/publ/bcbs24.pdf
 Rajani V. An Evaluation of Business Deals Using Plastic Money in
Kerala
 http://www.frbsf.org.
 https://popcenter.asu.edu/sites/default/files/problems/credit_card_f
raud/PDFs/Smith&Grabosky.pdf

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