25-08-2017, 09:32 PM
Credit Card Fraud
Credit Card.ppt (Size: 669.5 KB / Downloads: 181)
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
ID thieves harmvictims 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
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
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