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What Is Credit Card Fraud?

According to businessdictionary.com 'credit card fraud is the fraudulent use of a credit card account through the theft of the account holder's card number, card details and personal information, through a wide variety of methods in order to perform unauthorized transactions from the compromised account.' (businessdictionary n.d. 2/8/11)


The History of Credit Card Fraud

The Internet and new technology has given an old scams new legs. Transactions completed with credit cards seem to become more popular with the introduction of online shopping and banking. Many think that credit cards are a recent trend that took place during the late 20th century when in fact they have been around for longer and so has the crime of credit card fraud. This issue has been progressing over the years with new and modernising technology online and off with new methods of taking the necessarily information for our money and identity. There are many terms such as "phishing," "pharming" and "dumpster diving" that have appeared over time as they are committed and noticed. Below are details on some of these techniques from spamlaws.com
(http://www.spamlaws.com/online-credit-card-fraud.html)
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Phishing refers to when a group or individual issues emails to attempt to trick recipients into giving out their personal information like passwords and bank account details. These emails are very hard to pick up if its a scam and almost impossible to trace the scammers guilty of this activity. Phishing is certainly the biggest problem for many credit card companies today and is likely to be a problem for them in the future.

Pharming on the other hand is a recent and dangerous new method of the crime out of all of them. This process involves someone tampering with an internet server by 'corrupting a DNS, (Domain Name System).' (spamlaws n.d. 17/8/11). By doing this an unsuspecting victim will go on their bank website for instance and type in their personal information. This information will then be given to the criminal without the person knowing nothing un aware of what happened.

Who Does Credit Card Fraud Effect?

Wherever there is money, there is going to be someone trying to steal it. This is why it is no surprise that credit card fraud is high, forcing card holders and credit card issuers as much as $500 million a year (fraudpractice n.d. 18/8/11). Credit card fraud effects everyone who owns a credit card young or old, rich or poor. They are affected when a criminal steals their money and identity, identity theft being the worst possible outcome.
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Why is Credit Card Fraud So Controversial?

Credit card fraud is serious crime and deals with personal information and hard earned cash. The controversial issue of credit card fraud is what you get in return. When credit card fraud is identified, the losses to retailers and credit card holders often exceeds what they are liable to receive especialy if you are a victim of the crime. If your card gets physically stolen you are liable to get what you lost back yet if your pin was used and the card wasn't stolen you aren't liable. This is also why banks have introduced chip and pin technology. So if you fall victim to credit card fraud the banks don't have to lose money to pay you back.