This paper examines the nature of credit card fraud, the types of credit card fraud, measures to prevent credit card fraud, and recommendations to further reduce losses due to credit card fraud.
Credit card fraud is a growing problem. Multiple skimming (stealing information off a credit card), counterfeiting and phishing (luring victims through mass e-mails) schemes occur throughout the year, costing companies and victims billions of dollars. Although credit card companies and merchants have implemented various ways to help deter credit card fraud, such as physical features unique to credit cards and technological deterrents imbedded with the card, it is still a problem. More steps need to be taken to prevent and detect this type of fraud. Four different recommendations are presented to help control growing credit card fraud: (1) implement chip-based credit cards; (2) make skimming and counterfeit card equipment much more difficult to obtain; (3) provide incentives and training to merchants on spotting counterfeit credit cards; and (4) help victims restore their credit in a more efficient manner. This paper examines the nature of the credit card fraud problem and explains the three types of credit card fraud. Along with discussing existing preventative measures, the paper concludes with recommendations for credit card companies, merchants, and victims that, if implemented, will help to further reduce the losses caused by credit card fraud. References
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