Credit Card Fraud Essay
Frequent Credit Card Fraud due to Card Skimming
Credit Card Fraud is one of the biggest threats to business establishments today. Originally, credit cards simply carried raised numbers that were transferred to a carbon copy with a card-swiping machine. The merchant simply accepted any card presented. Spending limits and printed lists of lost/stolen cards were ineffective in preventing fraud and other financial losses. Merchants were required to telephone a transaction authorization center to get pre-approval of the transaction. The volume of telephone traffic grew too great, and more automated authorization systems allowed faster, easier, and verified transactions. Magnetic stripes on the backs of …show more content…
This paper will describe the development of a system to provide real time detection of fraud attempt so as to increase the security payment of credit cards use at merchant POS locations.
What is credit card fraud?
What is skimming?
How are cards skimmed and reproduced?
What are the implications of credit card fraud?
Can this type of fraud be prevented?
If so, how can this type of fraud be prevented?
About J$245.1 million has been lost to credit card fraud in Jamaica for 2009 (Jamaica Observer). In 2010 Europe, which has faced a bigger problem than the U.S.A saw card-skimming attacks jump 24% in the first six months to 5,743, the largest six-month number since data gathering began in 2004, according to the European ATM Security Team, a non-profit group.
Consumers face trouble trying to get fraudulent charges reversed, merchants lose the cost of the products sold have to pay chargeback fees and fear from the risk of having their merchant account closed and loss of reputation. The issuers and acquirers also have to make huge investments in preventing frauds by deploying sophisticated IT systems for detection of fraudulent transactions. They also face financial and