Credit card fraud is one of the biggest loss concerns in a financial institution. The Investors are often performed by a group of people either using fake credit cards to cheat unsuspecting retailers or in cooperation with the retailers to cheat the banks. This group of folks who performed fraud is referred to as fraud syndicates.
Kinds of frauds
There are various kinds of frauds which have identified by the banks. To facilitate the efforts of fighting fraud, they are grouped into different categories by their natures
- Counterfeit cards
Counterfeit credit card transactions are among the biggest fraud Reasons in the business. It constitutes about 40 percent of all money lost through credit card scams. The syndicates used various procedures to attain card information to make counterfeit prtship carding. The created counterfeit cards will have all the information of the real credit cards within their magnetic stripes. Among the known methods used is card skimming whereby information contained on magnetic stripes of cards listed into chips installed into EDC machines or via wire tapping technology.
- Lost or stolen cards
Lost and stolen credit card fraud shaped 20% or the next greatest fraud reason. Typically, the real cards have been stolen from cardholders in their office, gymnasium and unattended vehicles.
- Mail order or phone order Fraud
Mail order or telephone order fraud accounts for 10 percent or is the third highest fraud reason. Normally the fraud syndicates use unethical telemarketers and deceptive sites to acquire credit card information in the genuine cardholders. In this sort of fraud, the 3 digits the syndicates want the security number or card verification code CVC2 that is printed in the back of the real card to complete the fraud trades.
- Non-receipt Fraud
Non-receipt fraud occurs when the credit cards are intercepted by the Syndicates when they are on the way to the cardholders that are usually by courier or registered mails. This fraud rationale accounts for around 7% of the complete fraud transactions.
- Other fraud reasons
The balance 23 percent of fraud transactions composed of the following fraud Reasons not exhaustive:
- Fraudulent applications
- No cardholder signatures
- Unauthorized transactions
- Invalid transactions
Although your company might not be of a sensitive nature, the Information contained in your computer system, storage rooms or just sitting on a desk is very important to your enterprise and should be safeguarded. Allowing Open access to the general public puts your company at risk and potential Competitors could get access to the information. Card reader systems ensure that only those employees that need this information are permitted to see it. Business can be very aggressive and having this sensitive information could give your opponents a leading-edge. Hackers and prospective thieves often gain this information by simply walking into a business unnoticed