Credit Card Fraud and
By: Jason Baltazar
What is credit card fraud?
Credit card fraud is theft
and usage of another
person’s credit card for an
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
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%
6.20% 32.90% Computer Fraud
Nigerian Leter Fraud
Popular Scams of 2008
Fraudulent unsolicited e-mails to commit identity theft.
FBI fraud emails.
Unauthorized access to your personal email address, and the
fraudster sending phony distress emails to your contacts.
No delivery or receiving inferior products
Merchant Prevention (Online)
Ship to bill
Call credit card company to verify information.
Call billing number to confirm order
Red flagging bad orders
Database of all bad orders linking to any matching new order if information is identical.
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
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
Use Paypal if possible.
Shred all credit card receipts and sensitive documents.
Enroll in a credit report service
Password database program