Credit card fraud is the activity when someone uses your credit card without your permission, like when someone put an unauthorized charge on your account. It means that you take someone else’s credit card and use it as your own (yahoo, 2008). Credit card fraud is a term for theft and fraud to use a credit card or as a fraudulent source of funds in a transaction. The purpose of credit card fraud is to obtain goods without paying, or to obtain unauthorized funds from other person’s account (ASK, 2013). Credit card fraud taking unauthorized credit card information to charge purchases to an account or to eliminate the capital from it called identity theft. Furthermore, credit Card Fraud is a comprehensive term which use for stealing and
…show more content…
Even with the remarkable and increase the value of credit card transactions since then, these ratios have remained stable or improved due to fraud detection, and prevention systems has been reduced. Although, the fraud detection systems in today’s world are designed to avoid fraud in all transactions, still we are losing billions of dollars. In late 2008, credits losses have generally have been less than 7 “basis points” (One part in ten thousand, 1/10000), for example, “losses of $0.07 or less per $100 of transactions”. Moreover, in the United Kingdom £535 million were estimated as fraud (Wikipedia, 2013).
When through internet people started to use their credit card, it became costly for millions of accounts because credit cards have been compromised. Cardholder can report rapidly the stolen card, but a compromised account cannot be hoarded by a thief for weeks or months before any fraudulent use. If the credit card is stolen then the cardholder can report it, but in term of compromising the cardholder will not know that the money is stolen for weeks and months till they check their balance. Cardholders can minimize fraud risk through checking their account regularly (ASK, 2013).
When a credit card is lost or stolen, the cardholder should notify it to bank before that the thief purchases something. Most of the banks have 24 hour free telephone service for customer report and facility. A thief can purchase