Beware of credit card fraud

  A HARASH REALITY OF DIGITAL AGE
Credit card fraud is a wide -ranging term for theft and fraud committed by using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying or to obtain unauthorised funds from an Account.
The credit card fraud  occurs when a thief uses your credit card to make purchases. More serious is when someone uses your information to open accounts or take loans in your name. That's why  you need to fight to get your credit restored and  your name cleared an arduous process that can take months or years to complete.

HOW DOES CREDIT CARD FRAUD HAPPENS?
 well,the fraud begins with either the theft of the physical card or the compromise of data associated with the account like  number of card or other information which is necessary for a merchant during legitimate transaction. The compromise can occur by many routes, even tripping off the card holder,the merchant or the issuer. The fraudulent might go through the trash to find the discarded billing statements and then use your account information to buy. A retail or bank website may be hacked and your card number stolen. A waiter takes a photo of your credit card and uses your account to buy create another account or may be you get a call offering a free tip or discounted travel package. But to be eligible you have to join a club and give your account number , to gurantee your place. The next thing you know, charges you didn't make are on your bill and the trip promoters who called you are nowhere to found. So you are trapped.
 
CREDIT CARD FRAUDS's categories
.Application fraud- unauthorised opening of credit card account in another person's name for this enough personal information to be known for filling up the application
.Account takeover-criminal hijacking of an existing credit card account, personal inform about a victim to change the account's billing address.
.skimming- Let me inform it is a small electronic device.Theft of credit card information used in an otherwise legitimate transaction. It can occur at restaurants , bars, call centres, gas stations.
 Technological advances have also created avenues for credit card fraud with online purchasing now common , perpetrators need no physical card to make an unauthoried purchase.

  • In INDIA occured
An unidentified person allegely stolen personal information of 13 credit card holders of a multinational Bank and withdrew cash of Rs 3,73 lakh through on line  transaction. The cyber cell of pune registered this.
 Again central crime branch sleuths arrested five persons for cheating  several persons of their credit cards and then buying articles worth Rs 1.80 lakhwith the card. The arrested people were later remanded in judicial custody.
         Several such incidents .

 PREVENTATIVE MEASURES AS EVERY PROBLEM     HAS SOLUTION 

1. As we all are engaged in online shopping.  we need to clear our logins and passwords and change monthly.
2. Be alert in which banks or businesses to obtain personal information which they use to access your accounts... check their websites.
3. Record the credit card account,expiration date,security code and toll free phone numberon safety in a free proof lock box 
4. Kindly dont give your account number to anyone on the phone unless you have made the call to a company you know to be reputable.
5. Carry your cards seperately from wallet.
6.check accounts regularly so that you know when something is away. Call credit card issuer immediately if any erroneous charge seen.
7. Don't forget to take your paper receipt with you after eating or shopping.
 8.LIFELOCK and TRUSTED LD that market themselves as identity theft protection experts.you purchase the services of a dedicated identity theft protection firm or one of the products offered by your bank or insurer sign up for any free alerts that let you know of any credit card  activity that is out of the ordinary.
9. Report lost cards immediately.
 
By card issuer ,strong authentication measures can be used . multi-factor authentication to verify that the account is being accessed by the cardholders through requirements of additional information like account number ,pin etc. Out of band aunthentiaction to verify the transaction is being done by the cardholder through a known or trusted communicationchannel such as text message, phone call etc.
By merchants , pan transaction ,tokenization ,pin ,zip code etc to be used to avoid this.


LAW
under Information Technology Act  2008, section 43 (a) , 43(b),43(g) along with 66 applicable to it. Section 420,467,468,471 of IPC ,1860 also applicable. The victim can register a complaint in police station  and complainant can also fine for compensation upto 10 lakh rupees with bank ombudsmanor 5 crore rupeesbwith adjudicating officer of state / civil court. It act provides 3 years imprisonment or fine 5 lakh rupees or both



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