Title: credit card Fraud
News Item: Credit cards stolen and then misused.
Areas of Impact: Business and Employment
Candidate name: Deepan Chakraborty
School name: Pathways world school
Word Count: 950
Presentation of the issue-
Credit card fraud is a very wide-ranging term for the criminal act carried out with the use of a credit card. The sole purpose for such an act is to purchase products without paying. Credit card fraud can also be seen as an addition to Identity Theft. The fraud usually is the theft of the card, physically or the compromise of the data linked to the account, which can be the card account number. Stolen card can be reported by the card holders as soon as they realize their can has been stolen, but the account linked to that specific card can be used by the thief for many months or weeks before any fake use, which of course makes it very difficult to recognize the source of the compromise. For the card holder himself, he or she is unaware of this until he receives the billing statement, which is delivered from time to time.
When a credit card is stolen, it can be used until the holder informs the issuer that his or her credit card is stolen or lost. It is very much possible that the thief makes several unauthorized thousands of dollars purchases with that specific card until the card is canceled by the issuer. And for the merchants, when hit by a fraud, the credit card processors increase their rates, which also lead to increased risk. The merchant also risks losing their accounts with the card companies if their fraud rate gets too high. Credit card fraud is one of those things that cannot be completely eliminated or stopped; this is an issue that needs to be managed. Merchants must develop a delicate balance between using safeguards to prevent fraud and not creating too many hoops for customers to jump through.
The Essay on Credit Card Fraud
Credit Card Fraud Some facts about credit card fraud: Credit cards. They are everywhere. They are so easy to use and they are accepted almost anywhere in the world. These are just some of the reasons why there is a big problem in the world today. This problem is known as credit card fraud. Credit card fraud is one of the most common types of fraud that there is. If a dishonest person gets a hold ...
Credit is a way of selling products or services without the buyer possessing the cash in hand. A credit card is way of offering credit to the consumer, the card holder. Today, every credit card has an identifying number that helps in shopping transactions. This is a very easy process as compared to keeping records of one’s identity, billing address and the basic terms of repayment. The idea of credit cards was initiated by John Biggins, he is the inventor of the first bank issued credit card of Flatbush National Bank of Brooklyn in New York. In 1946, Biggins initiated the “Charge-It” program between the bank customers and the local merchants. Merchants could leave sales slips into the bank and the bank billed that specific customer who utilized the card. In 1950, the Diners Club issued their credit card in the United States. This was invented by Diners’ Club founder Frank McNamara and it was meant to pay for the restaurant bills. Any customer using the Dinners club credit card could eat without paying cash at any of the restaurant that would accept Diners’ Club credit cards.
Credit cards were promoted for the first time for the travelling salesmen so they could use it on the road. By the early 1960s, many companies were offering credit cards, marketing them “as a time-saving device rather than a form of credit” – (Becoming American Express, reinvention and customer service- Reed Massengill; a book released by the bank itself).
American Express and MasterCard became enormous triumphs overnight. According to Encyclopedia Britannica, “the use of credit cards originated in the United States during the 1920s, when individual firms, such as oil companies and hotel chains, began issuing them to customers.” However, there have been references to credit cards having been made in the 1890’s in Europe. Early credit cards used to involve the sales directly between the merchant issuing the credit and credit card, and the customer. It’s only since the 1930’s that the credit cards of different merchants were accepted by other merchants. Today, we can use credit cards with numerous third-parties. Credit cards as we know them today were not always like this; there used to be credit tokens made with metal coin or plates, they were made from fiber, paper, and its only now that it is mostly plastic cards.
The Dissertation on Letter Of Credit Fraud Seller Bank
1 Introduction - Letters of Credit in International Trade. In international trade, payment by means of a letter of credit has become so widely used that Justice Kerr of the English Court has called the instrument, "the life-blood of international commerce." [1] It is the most effective method to secure payment in an international trade transaction, in a way that takes care of the interests of both ...
Credit card frauds can cause major damage to the merchant issuing the credit card. Merchants have problems with their business and products worth a lot of value are lost. There are several ways to prevent this from happening but no definite way to stop it. Address Verification system can be used, however AVS is only available for the U.S. and partially available in four European countries. With the help of these checks, one can verify the cardholder’s address and zip code, if it matches the information at the card-issuing bank then it is legit. Then it can be done manually, the card-issuing bank can be called, noting the detail of the merchant number, cardholders’ phone number, and the customer’s full name, address; and then can request the card issuing bank, to make a call to the customer to confirm the charge. There are several other ways in which the merchant can prevent credit card fraud. Check if multiple orders are placed shipping to the same address, but different credit cards were used. Merchants can check orders for a strangely high quantity of a single item. Thieves can have access to quite a lot of stolen card numbers. Check for multiple orders being sent from the same IP address. And for the customers, they have to keep a regular check of the credit card in order to not be a victim of credit card fraud.