Credit card fraud is a term for theft and fraud occurred using a credit card or any similar payment mechanism due to fraudulent source of funds resulting in a transaction. The purpose of this may be to obtain unauthorized funds from an account or get the items without paying.
Origins:
The fraud starts with either the theft of physical card or adapting of data connected with account, including the other information or card account number.
Card holders can report about stolen cards, but identifying the source of the compromise is difficult as the account can be accumulated by a thief for weeks or months before any fraudulent use. After receiving the billing statement, which may be delivered infrequently the card holder can discover fraudulent use.
Stolen cards:
Credit card is usable till the holder informs the issuer that the card is stolen or lost . When card is canceled then only it is possible to stop the unauthorized purchases. A common counter measure is to be needed by user to key in some recognizing information, such as postal code or the user’s ZIP code. Casual theft of card is avoided by this but if any one steals the wallet of card holder, then it can be alright for the thief to understand the information by focusing at other items in the wallet.
Card not present:
Some merchants take order by mail or internet, these are major routes for fraud. When a card holder is not physically present merchant must depend on holder giving the information indirectly whether by telephone, mail or through the internet. And it is more risky than presenting in person, and easily card issuer likely to charge a grater transaction for 'card not present', so there is greater risk.
Origins:
The fraud starts with either the theft of physical card or adapting of data connected with account, including the other information or card account number.
Card holders can report about stolen cards, but identifying the source of the compromise is difficult as the account can be accumulated by a thief for weeks or months before any fraudulent use. After receiving the billing statement, which may be delivered infrequently the card holder can discover fraudulent use.
Stolen cards:
Credit card is usable till the holder informs the issuer that the card is stolen or lost . When card is canceled then only it is possible to stop the unauthorized purchases. A common counter measure is to be needed by user to key in some recognizing information, such as postal code or the user’s ZIP code. Casual theft of card is avoided by this but if any one steals the wallet of card holder, then it can be alright for the thief to understand the information by focusing at other items in the wallet.
Card not present:
Some merchants take order by mail or internet, these are major routes for fraud. When a card holder is not physically present merchant must depend on holder giving the information indirectly whether by telephone, mail or through the internet. And it is more risky than presenting in person, and easily card issuer likely to charge a grater transaction for 'card not present', so there is greater risk.
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