Credit Card Fraud

Credit card fraud is essentially theft committed with the help of a credit card to buy goods without actually paying for them. The universal security feature is the signature panel in all cards but forging one’s signature is hardly a challenge. When such a card gets lost or is stolen, the culprit may be able to make transactions till that time the owner does not order it to be discontinued. In view of the growing menace of national credit card fraud, some self-protective measures may be taken:

  • One should always be aware of the place where his card lies and under no circumstances should lend it to someone.
  • The receipts often contain vital data and it is wise not to throw them without destroying them completely.
  • On receiving the credit card one should call at once to activate it.
  • It is advisable to regularly check online about the purchases being made from this card and even when the bill comes at the end of a month.
  • A document containing a complete catalog of all the credit cards being used, their dates of expiry, address of issuers and customer care numbers should at all times be kept handy.
  • .It is absolutely naïve to transfer one’s credit card number over the phone unless he is absolutely sure who the receiver is.
  • Before making online purchases it is prudent to verify the authenticity of the website since most of the fraud happens online.
  • For those owning an online business, it is important to make the transaction process secure.
  • The National Check Fraud Center reports as many as 1.4 million fraud checks being written per day. There are some ways to protect a business from such check frauds:
  • Printing one’s own checks for security since when produced in bulk by some other party; few may be conveniently misplaced.
  • The check printing software must be protected with a password and inaccessible by other ordinary users.
  • Ensuring that the check stock is secured so that a scanner cannot copy them.
  • Generating a positive pay file listing the number and amount of the checks to control fraud.
  • Reducing accessibility to documents having account numbers imprinted. Those containing sensitive data should be shredded and not simply thrown away.
  • Stopping mail theft will automatically curtail check fraud.
  • Preprinted checks must be stored in a secure location.
  • Doing away with checks altogether and resorting to electronic payments.