Credit Card Fraud Essay - 3025 Words

Credit Card Fraud: Overview, Analysis, and Recommendations Credit card fraud is a significant problem in the U.S. with losses exceeding $5.718 billion annually (Sullivan, 2010). Perpetrators are continually developing new methods to circumvent established and evolving fraud prevention controls. With economic expansion continuing its advance into the digital era and electronic forms of payments increasingly common, the problem of credit card fraud is likely to increase. Internet-based credit card fraud is nearly 15 times higher than in-person transactions (Bhatla, Prabhu Dua, 2003). Advances in investigative methods, legislation authority, and technology innovations are required to combat this broadening problem. Credit card†¦show more content†¦Within 2 years, the popularity of the Diners Club Card expanded to over 20,000 cardholders and created the opportunity for the emergence of American Express. The Diners Club Card and American Express operated on a closed loop system, meaning the c ard issuer handled all aspects of the transaction. The modern credit card most commonly associated with today’s revolving balances was created in 1966 by MasterCard and Visa (Woolsey Gerson, 2014). Unlike Diners Club and American Express, MasterCard and Visa are not independent merchants, but rather they are payment networks that create an electronic system that links banking associations with consumers by utilizing an open-loop system. Banks grant the credit, credit card companies process the credit, and consumers use the credit. This created an efficient, cost-effective system and grew in popularity exponentially. Soon after, other card issuers such as Discover and various other department cards joined the credit card momentum (Woolsey Gerson, 2014). Despite the efficiency of the credit processing system, it created a unique environment for various kinds of frauds to prosper. Credit card fraud can change through the technology and methods employed. To combat credit card fraud, it is first important to understand the various types of methods used and the modus operandi of fraudsters. The main fraud schemes are account takeovers,Show MoreRelatedCredit Card Fraud1910 Words   |  8 PagesRunning Head: Credit Card Fraud Impact of Credit Card Fraud Outline Card Credit Fraud Thesis Statement: Credit card fraud is an inclusive term for larceny and deception committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to attain goods without paying, or to achieve illegal resources from an account. Credit card fraud is also an appendage to identity theft. According to the Federal Trade Commission, while identityRead MoreCredit Card Fraud Essay2919 Words   |  12 Pagesform of credit card, brought in convenience and made life simpler for us, but along with it came the Pandora’s Box. 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According to StatisticRead MoreCredit Card Fraud Should Be A Federal Offense1120 Words   |  5 Pages Abstract Credit card fraud is a federal offense and can get an offender up to 20 years in prison depending on the severity of the situation. Should it be a federal offense? Credit card fraud is becoming more and more relevant especially in the United States , matter of fact it increased by 16% in 2016 alone. This is a serious problem in today s society. The hypothesis that s being examined in this paper is that credit card fraud should be a federal offense. This has become a relevantRead MoreDigital Credit And Debit Card Fraud Essay741 Words   |  3 PagesThe Problem: Worldwide credit and debit card fraud resulted in losses amounting to $16.31 billion during the year 2014. The United States has been disproportionately affected by this fraud, due to their lack of adoption of the EMV Chip security measure. 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