Credit Card Fraud
The term credit card fraud denotes a number of activities but in general it can be said that using anyone's credit card without his or her concern can be termed as credit card fraud. The incidents of credit card frauds are increasing worldwide. As a result, the credit card holders as well as the credit card companies are facing huge financial loss.
There are different types of credit card frauds. Some of these are the following:
Online Credit Card Fraud
Account TakeoverBasically the fraudulent persons are involved in getting hold of credit cards of others through different ways for the purpose of using the cards for their personal financial transactions. All transactions done through the stolen credit card are charged from the account of the original credit card holder.
Internet is another way, through which credit card frauds can be done. The frauds collect secret information like pin number and account number of a credit card holder by making tricky use of the Internet facility. These data are then used to make purchases through the Internet. They can also use the data for drawing money from the existing accounts of the original credit card holders.
The cardholder is advised to report to the credit card issuer immediately after the card is lost. This can minimize or even stop the misuse of the credit card. However, it is very difficult to track credit card fraud if it involves information loss. The cardholder comes to know about the fact only when the credit card company informs him about the transactions in the monthly statements. This type of credit card fraud causes major financial loss to the cardholder.
Last Updated on : 9th July 2013