Criminals may steal documents such as utility bills and bank statements to build up useful personal information. Alternatively, they may create fake documents. Account takeover[ edit ] An account takeover occurs when criminals pose as a genuine customer, gain control of an account and then makes unauthorized transactions.
According to Action Fraud,  fraud is committed at the point money is lost. Control at the account level offers better long-term returns for fraudsters but can be extremely harmful to the rightful account owners. The most prominent types of account takeovers deal with credit card fraud.
As opposed to stealing credit card numbers which can be changed after the user reports it lost or stolen, fraudsters prefer account takeover to maximize their return on investment. This individual then intercepts communication about the account to keep the victim blind to any threats.
Victims are often the first to detect account takeover when they discover charges on monthly statements they did not authorize or multiple questionable withdrawals . Recently there has been an increase in the number of account takeovers since the adoption of EMV technology, which makes it more difficult for fraudsters to clone physical credit cards .
Among some of the most common methods by which a fraudster will commit an account takeover include brute force botnet attacks, phishing, and malware. For other uses, see Skimmer disambiguation. Call centers are another area where skimming can easily occur.
The device or group of devices illicitly installed on an ATM are also colloquially known as a "skimmer". Recently made ATMs now often run a picture of what the slot and keypad are supposed to look like as a background so that consumers can identify foreign devices attached.
Skimming is difficult for the typical cardholder to detect, but given a large enough sample, it is fairly easy for the card issuer to detect. The issuer collects a list of all the cardholders who have complained about fraudulent transactions, and then uses data mining to discover relationships among them and the merchants they use.
For example, if many of the cardholders use a particular merchant, that merchant can be directly investigated. Sophisticated algorithms can also search for patterns of fraud. Merchants must ensure the physical security of their terminals, and penalties for merchants can be severe if they are compromised, ranging from large fines by the issuer to complete exclusion from the system, which can be a death blow to businesses such as restaurants where credit card transactions are the norm.
If the card is processed successfully, the thief knows that the card is still good. The specific item purchased is immaterial, and the thief does not need to purchase an actual product; a website subscription or charitable donation would be sufficient.
A website known to be susceptible to carding is known as a cardable website.
In the past, carders used computer programs called "generators" to produce a sequence of credit card numbers, and then test them to see which were valid accounts.
Another variation would be to take false card numbers to a location that does not immediately process card numbers, such as a trade show or special event. A set of credit card details that have been verified in this way is known in fraud circles as a phish.
A carder will typically sell data files of the phish to other individuals who will carry out the actual fraud. Where an issuer does not use random generation of the card number, it is possible for an attacker to obtain one good card number and generate valid card numbers. Telephone phishing can also be employed, in which a call center is set up to pretend to be associated with a banking organization.
Balance transfer checks[ edit ] Some promotional offers include active balance transfer checks which may be tied directly to a credit card account.
These are often sent unsolicited and may occur as often as once per month by some financial institutions. They are one path at times used by fraudsters. Unexpected repeat billing[ edit ] When a cardholder buys something from a vendor and expects the card to be charged only once, a vendor may charge the card a small amount multiple times at infrequent intervals such as monthly or annually until the card expires.
The vendor may state in the fine print that the customer is now a "member" and the membership will be renewed periodically unless the cardholder notifies the vendor in accordance with a cancellation procedure in the "membership agreement" which the cardholder agreed to when they made the initial purchase.Sallie Mae is a student loan company with over 40 years of providing student loans for college, supporting graduate and undergraduate study, and more.
Apply for a Sallie Mae student loan today! Credit card fraud is the unauthorized use of a credit or debit card, or similar payment tool (ACH, EFT, recurring charge, etc.), to fraudulently obtain money or property.
Credit and debit card. AIRR: ASSOCIATION OF INDEPNDENT READERS AND ROOTWORKERS: A non-profit membership organization of accredited professional Spiritual Practioners, Readers, Diviners, Rootworkers, Hoodoo Doctors, and Conjures offering free information and service referrals to the public.
Credit Card Fraud Essay Sample. Credit Card Fraud Some facts about credit card fraud: Credit cards. They are everywhere. They are so easy to use and they are accepted almost anywhere in the world. Credit card fraud continues to be a menace especially in developing countries.
But credit card companies and issuing banks are working to stay one step ahead of large global syndicates. Credit card fraud is a wide-ranging term for theft and fraud committed using or involving a payment card, such as a credit card or debit card, as a fraudulent source of funds in a transaction.
The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account.