Credit Card Fraud in the USA - Research Paper Example

Comments (0) Cite this document
Summary
In the paper “Credit Card Fraud in the USA” the author analyzes the theft or counterfeit of the credit card which is then illegally used to obtain funds, services or goods by means of deception. Credit card fraud is considered a white-collar crime…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.3% of users find it useful
Credit Card Fraud in the USA
Read TextPreview

Extract of sample "Credit Card Fraud in the USA"

Download file to see previous pages The onus falls on the merchants to pay for the credit card fraud and if it lacks in proper insurance, they have to incur the chargeback fee as well. The US is moving towards a cashless society but credit card theft has become a major concern of retailers, consumers, credit card issuers and the law enforcement agencies (Hearn, 1986). Credit cards were introduced in the 1950s and since then fraudsters have been finding ways to attack the system (Byrne, 2010). According to The Survey of Consumer Payment Choice, there were 176.8 million credit card holders in 2008 and the average cardholder has 3.5 credit cards (Woolsey & Schulz, 2011). Credit cards represent the majority of the total $315 billion US financial fraud loss in 2005 while according to a European study more than 22 million adults were victims to credit card fraud in 2006 (Conlin, 2007). According to the 2009 LexisNexis True Cost of Fraud Study, retailers lose $100bn a year to consumer-facing fraud. Twenty-four percent of all retailers, 43% of whom have a strong online presence, reported increase in losses through credit card fraud. Most card fraud payment losses were borne by the card issuers (59%) followed by the merchants (41%), says Sullivan (2010). In 2006 the total fraud losses were estimated at $3.718bn as per table provided below: Source: Sullivan (2010). The process for approving card payments depends to a large extent on information. The criminals have an incentive to steal this information and this leads to attacks on computers, data breaches and ultimately payment fraud. Card fraud is the highest in the United States than countries such as UK, Spain and Netherlands. Better technology in the payment approval system can help combat fraud to some extent. Online payment approval permits automated checks against wider sets of information such as the cardholder’s zip code or transaction history (Sullivan, 2010). Criminals gather such information and use it to commit fraud. Criminals steal wallets, intercept mail and get access to account statements, or even spy and gather information when the card is in use. Video cameras secretly placed can capture valuable information. Phishing and hacking are other modes through which criminals gather information to conduct fraud. Credit and charge card fraud cost cardholders and issuers millions of dollars each year. Earlier the fraud used to occur over the telephone when the fraudster posed as an organization representative and offered incentives in exchange for credit card information. Theft is the most common form of fraud but people can also use the card number without the knowledge of the owner of the card (FTC, 2009). The thief eyes the trash to collect discarded receipts or carbons through which it is possible to obtain the credit card number. Others ways in which fraud can occur is when dishonest clerks make an extra imprint and use the card details to make personal charges. Now the criminals use packet-sniffing programs on the Internet and steal credit card information electronically. The largest case in the US credit card fraud history took place in 2008 when Albert Gonzalez and his team attacked TJX and other companies (Byrne, 2010). They acquired more than 130 million debit and credit card numbers and stole tens of millions of dollars. These were basically of customers of 7-eleven and other retail giants.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Credit Card Fraud in the USA Research Paper Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.org/law/1430674-credit-card-fraud-in-the-us
(Credit Card Fraud in the USA Research Paper Example | Topics and Well Written Essays - 1750 Words)
https://studentshare.org/law/1430674-credit-card-fraud-in-the-us.
“Credit Card Fraud in the USA Research Paper Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/law/1430674-credit-card-fraud-in-the-us.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Credit Card Fraud in the USA

Case Study: Pedophilia and Credit Card Fraud in the Internet

...?RUNNING HEAD: PEDOPHILIA AND CREDIT CARD FRAUD IN THE INTERNET Case Study: Pedophilia and Credit Card Fraud in the Internet By I Introduction Pedophilia is a sexual deviance in which an individual keeps an unnatural desire to engage in sexual relations with children. In the United States, the number of sexually abused children increased in the 1990s by 125% (Barlow & Durand 2008 p. 376). The advances in the internet technology have made it easier for pedophiles to hunt and prey on children. With a click of the mouse, pedophiles can gain access to a massive number of social networking sites where young children frequent on-line. To...
3 Pages(750 words)Case Study

Credit card frauds

...History of Credit Card Frauds Literature Review History of Credit Card The use of credit cards in the consumer sector had its inception in the region of United States. Gomez (2008) observes in this regard that a rich businessman of United States Frank X. McNamara helped to enhance the concept of credit in regards to making purchases of consumer products and other utilities. McNamara worked to bring about the Diners Club cards which helped many people to avail meals on credit (Gomez, 2008, p.461). Definition and Type of Credit CardsCredit cards emerge as a better substitution for cash through which the consumers can go for purchasing different categories of commodities. Sander (2003) observes in this respect that credit card... to the...
15 Pages(3750 words)Literature review

Credit Card Fraud in the UK

...Credit Card Fraud in the UK Wordcount: 1830 Introduction Credit card fraud is one of the most attractive crimes that tempt ordinary people today as purchasing become the national past time of many countries with the rise of free market economies. However, more seasoned criminals as well as information and communication technology experts or even neophytes gravitate towards the activity for the same reason, and for more. This paper will provide a background about credit card use, credit card fraud, its implication, as well as recommendation to reduce commission of the crime. Use of credit card or plastic cards started in 1965 although Woolsey and Gerson (2009) traces the practice with issuance of proprietary cards by oil companies... ,...
7 Pages(1750 words)Research Paper

Credit Card Fraud Statistics and Facts

...Running head: Credit card and Biometrics Credit Card Fraud Prevention via Biometrics Executive Summary Credit cards are widely used all over the world for money transactions. It is used for purchasing goods, services or to take money from the Automatic Teller machines. The increasing influence of internet and the advancements in technology has paved way for payments through credit cards. At the same time misuse of technology resulted in credit card forgery like cyber crimes which created doubts in the minds of the public about the reliability of using...
5 Pages(1250 words)Term Paper

Credit Card

... Stop! That Credit Card Could Kill You Leesa, a 20-year-old in her second year, is struggling with hercourses and faces dropping out of college. Her long hours and late nights are having a negative effect on her attendance and her grades are suffering. Though she is blessed with a scholarship, grants, and financial aid, she is forced to maintain a full time job just to pay for her recently acquired credit card debt. If she does make it through school, her employment prospects will be grim due to her poor credit history. Leesas debt may also result in a lifetime of ill health or even suicide. Though it may sound outrageous, mismanaged credit is a major enemy to college students and carries with it a lifetime of hardship. After... the...
2 Pages(500 words)Essay

RHB Credit Card Marketing

...strategy. - Unique and exclusive design. - Increased number of fraud cases. - Better service to customers by the launch of star branches and service ambassadors. - Increased number of female users. - Competition from other credit cards (MBF Lady MasterCard). - Possibility of mergers. PRICE - Low annual fees. - Best loan package in the banking industry. - Fixed credit limit rate. - Free insurance coverage for the credit card purchase. - Annual fee waivers by other banks. PROMOTION - Co-branded promotion such as Air-Asia credit card. - Expiry of reward points...
39 Pages(9750 words)Dissertation

Credit Card Security

...Your Your Full Number MA07A00 A0128S18 Credit Card Security CyberSource has recently reported that 40 percent of Britonsavoid shopping online due to issues on security of personal information. Study shows that more than one-third of poll respondents know of someone being defrauded online. Furthermore, 70 percent of the respondents have credit card safety subscription programs that are designed and promoted by big credit card companies like Visa, American Express, and MasterCard. Visiting the American Express website, it is clear that the company has designed a measure to protect their credit card...
2 Pages(500 words)Research Paper

Credit card fruad

...Emirates UK United Kingdom US United States USA United States of America WTO World Trade Organisation WWW World Wide Web Chapter 1 The Issue in Context Introduction The proposed research will examine one of a number of growing crimes that is perpetrated over the Internet via the World Wide Web (WWW). Specifically, it will look at credit card fraud. Although credit card fraud is not new, some form of fraud involving credit cards has existed for decades; the growth of commercial transactions over the WWW has made these crimes a major consideration for law...
80 Pages(20000 words)Essay

Credit card

...of the first countries to be affected by credit card fraud. However, the issue has not been effectively managed to complete satisfaction to date (Levi, 1988). Moreover, the British lost £118.2 million in 2006 which is an increase of £36 million from that of 2005. The reports show that the growth of credit card fraud incidences was because British card holders spent money when they were overseas. However, countries were most of the fraudulent transactions were made were in Spain, France, Italy, USA and Thailand (Naylor, 2009). In Europe, credit card...
60 Pages(15000 words)Essay

Macroeconomics (credit card impact)

...Impact of Credit Cards on the Economy The current of technology and the economy has forced many people to rely on credit cards and other creditinstruments to make purchases. However, a deep analysis reveals that credit cards cannot be considered as money, since, in macroeconomic sense, money falls into three broad categories, M1, M2 and M3. The first category of money consists of currency, demand deposits, and other liquid deposits against which credit can be taken (Zandi and Singh, 2010). The second category consists of M1, time deposits, and other deposits in banks, while the third category consists of M2 and large...
1 Pages(250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Credit Card Fraud in the USA for FREE!

Contact Us