Credit Card Fraud - EgapGO
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Credit Card Fraud

Fraud is one of the major ethical issues in the credit card industry. Credit card fraud is the unauthorized use of a credit or debit card, or similar payment tool (ACH, EFT, recurring charge, etc.), to fraudulently obtain money or property. Credit and debit card numbers can be stolen from unsecured websites or can be obtained in an identity theft scheme.

Since the evolution of the internet, many small and large companies Shave moved their businesses to the internet to provide services to customers worldwide. Credit-card fraud is increasingly rampant in recent years for the reason that the credit-card is majorly used to request payments by these companies on the internet. Therefore the need to ensure secure transactions for credit-card owners when consuming their credit cards to make electronic payments for goods and services provided on the internet is a criterion

Who are the credit-card fraudsters?

  • Credit-card information buyers: They are fraudsters with little or no professional computer skills (e.g. Computer Programming, Networking, etc.) who buy hacked (or stolen) credit-card information on an illegal “credit-card sales” website.
  • Black hat hackers: Recent research on Hackers in terms of Computer Security ned a “black hat hacker” (also known as a cracker) as a hacker who violates computer security with malicious intent or for personal gain.
  • Physical credit-card stealers: They are the type of fraudsters who physically steal credit-cards and write out the information on them. They physically steal these plastic credit-cards (maybe by pick-pocketing in a crowded place) and write out the credit-cards information with the intention of using this credit card information to make electronic payment for some goods and services on the internet.

Tips for Avoiding Credit Card Fraud:

  • Don’t give out your credit card number online unless the site is secure and reputable. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but provides some assurance.
  • Don’t trust a site just because it claims to be secure.
  • Before using the site, check out the security/encryption software it uses.
  • Make sure you are purchasing merchandise from a reputable source.
  • Do your homework on the individual or company to ensure that they are legitimate.
  • Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.
  • Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.
  • Consider not purchasing from sellers who won’t provide you with this type of information.
  • Check with the Better Business Bureau from the seller’s area.
  • Check out other websites regarding this person/company.
  • Don’t judge a person or company by their website; flashy websites can be set up quickly.
  • Be cautious when responding to special investment offers, especially through unsolicited e-mail.
  • Be cautious when dealing with individuals/companies from outside your own country.
  • If possible, purchase items online using your credit card. You can often dispute the charges if something goes wrong.
  • Make sure the transaction is secure when you electronically send your credit card number.
  • Keep a list of all your credit cards and account information along with the card issuer’s contact information. If anything looks suspicious or you lose your credit card(s), contact the card issuer immediately.

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