Credit Card Fraud Prevention.ppt

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					Credit Card Fraud and

    By: Jason Baltazar
         MIS 304
            What is credit card fraud?

 Credit card fraud is theft
 and usage of another
 person’s credit card for an
 unauthorized transaction.

 The purpose may be to
 obtain goods or services
 without paying, or to
 obtain unauthorized funds
 from an account.
          Credit Card Fraud By the Numbers

 IC3 (Internet Crime Complain Center) reports that there were 275,284 complaints of
  internet crime around the country, of which only 72,940 cases were investigated by
  law enforcement.

 Total dollar loss from all reported cases of fraud was $264.6 million.

             Individual         Individual             Top Countries
             Complaints         Perpetrators           by Perpetrators
         California 14.6%       California 15.8%       United States 66.1%

         Texas 7.2%             New York 9.5%          United Kingdom 10.5%

         Florida 7.1%           Florida 9.4%           Nigeria 7.5%

 Email (74.0%) and web pages (28.9%) were the two primary mechanisms by which
  fraudulent contact took place.
  2008 Top 10 IC3 Complaint Categories
 2.50%     2.20%    1.90%
                                     Auction Fraud
                                     Credit/Debit Fraud
                                     Confidence Fraud

 6.20%                      32.90%   Computer Fraud

                                     Check Fraud
                                     Nigerian Leter Fraud

   9.00%                             Identity

                                     Financial Institutions
                   25.50%            Fraud
                  Popular Scams of 2008

 Fraudulent unsolicited e-mails to commit identity theft.
    FBI fraud emails.
    Lottery Scam
    Unauthorized access to your personal email address, and the
     fraudster sending phony distress emails to your contacts.

 Overpayment Scam
    Roommate scam

 Ebay Scams
    No delivery or receiving inferior products
                Merchant Prevention (Online)

 CVV/AVS Verification
     Ship to bill
     Call credit card company to verify information.

 Call billing number to confirm order

 IP Address

 Red flagging bad orders
     Database of all bad orders linking to any matching new order if information is identical.

 Release form
     Additional documents
     Small charge verification

 Calculating the level of risk based on the above factors
      How your credit card company helps

 24/7 Online and Telephone support
   View pending transactions

 Locking your credit card after suspicious activity
   Data mining can help define and determine suspicious activity

 Call notification
     What you can do to help prevent fraud.

 Don’t give your credit card info online unless the website is secure.

 Make sure the site is reputable/legitimate source. Check the BBB for
  previous complaints.

 Use Paypal if possible.

 Shred all credit card receipts and sensitive documents.

 Enroll in a credit report service

 Password database program
   KeePass

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