Credit Card Frauds are rising globally

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Today, financial sector is increasing at a rapid rate. These financial sectors contain huge amount of data which is increasing on timely basis. Majority of data is in the banking sector. As data increases, frauds also get a green signal. Majority of frauds are associated with the banking sector. Common frauds in banking sector are frauds related to investments and money laundering. Knowingly or unknowingly if a bank is involved in any of these frauds then it has to face serious consequences.

The payment industry is in search of new innovations to combat frauds and avoid fraudster from doing frauds. The most common types of frauds are the credit card frauds. It is necessary to educate the consumers regarding the types of frauds and how to tackle them. There are different types of credit card frauds.

The most common type of credit card fraud is committed by stealing someone else’s card. The fraudster can use the details on the stolen credit card to withdraw money from customer’s account. In such cases the customer should immediately report the bank. The bank quickly blocks the card and thus the customer is saved from becoming a victim.

The next fraud on the list is taking over an account. Fraudster manages to get hold of card holder’s information about his house, address, name etc. using this information, the fraudster makes a contact to cardholder’s bank. He then reports that the card is lost and asks for a change in address. Doing this he obtains a new card in the cardholder’s name.

Next fraud is known as cloning. When a card is swiped at some place, fraudsters use cloning machines to copy the credentials of the card without the card holder having any idea about it. This information is then used by the fraudster to make transactions at some other place. The victim takes all the precautions pertaining to safety of his cards and still falls for this trap. However, these frauds have reduced drastically due to the safety emv chip installed on the cards.

The next fraud is again about stealing. When a new card is issued by the bank it reaches the customer via post. However, the fraudsters sometimes may even attempt to steal this post for acquiring the card. In such cases the customer should immediately contact the respective bank so the bank and the postal service can loon into the matter and do the needful.

Then comes the false applications. Fraudster usually makes fraudulent applications by using the name of another person to obtain a card.

The next fraud is known as multiple imprints. In this the fraudster records a single transaction multiple times on old school credit card imprint machines. This is known as knuckle busters. Some times the fraudsters lure merchant employees into their frauds to defraud the banks.

There are some frauds which are committed through telephone or email orders. The new entrant in these types of frauds is the ecommerce industry which is exposed to large number of credit card and payment frauds. Efforts are being taken to improve the card verification activity and security to prevent frauds in online transactions.

There are measures like zero liability policy which help the customers from unauthorised transactions in digital payments. However, the customers also have to be responsible and aware in such cases to avoid falling to the traps set by the fraudsters. The customers need to stay vigilant about the security of their personal information in order to reduce the risks. No matter how strong security framework is offered to the customers, unless the customers take efforts on their own, the risks cannot be mitigated.