NCJ Number
140221
Journal
Security Management Volume: 36 Issue: 12 Dated: (December 1992) Pages: 71-74
Date Published
1992
Length
4 pages
Annotation
This article discusses the extent of credit card fraud, obstacles to preventing and investigating it, and improved ways to counter it.
Abstract
Visa and MasterCard reported losses associated with credit card fraud in the United States for 1991 of half a billion dollars. Credit card fraud is expected to increase, eclipsing all other retailer-reported external losses. Credit card abuse is an easy score for criminals; personal identification is not required as it is with checks; the acceptance of credit cards is practically universal; and current authorization procedures imposed at the point of sale are designed to focus primarily on credit limit controls that are irrelevant to the detection and prevention of fraud. The problem involves many participants, is driven by conflicting motives, and spans innumerable jurisdictions. Security precautions are often weakened by banks in pursuit of market share, consumers reluctant to accept cumbersome interactive prevention measures, and the fact that crimes cross jurisdictions. Banks should exert better control of the activation of new cards and verify that reissued cards are received by their authorized accountholders. Retailers also need to get involved in efforts to counter the problem. Local police should be made more aware of the extent of the problem. Also, the public needs to change its attitudes about credit card abuse.