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Credit Fraud Stay One Step Ahead

Introduction This paper concentrates on identification methods and business preventive measures. Why do people fail to notice that credit fraud is a growing problem and what could continue if business and consumers stop believing the seriousness of credit card fraud? The Business community needs increased research and preventive controls that prevent credit and identity fraud. Unless changes are instituted fraud will continue to be a persistent problem.

More than half of all adults have experienced some type of cybercrime, and more than one in 10 blames them elf, according to a new survey commissioned by Symantec and conducted by independent market research firm Strategy One. Gentry, C.. (2008, June). Risk-less Business. The problem genuinely is a lack of education and training, by both the consumer and the business owner. Consumers become victims of identity theft and fraud when without prior knowledge criminals acquire personal information. The criminals then commit fraud by purchasing items without the consumer’s knowledge and approval.

Preventive measures utilized by both business owner and consumers will substantially reduce the possibility of Credit Card fraud. The frequency of credit fraud is creating an impact on sales and the growth in business. Based on federal trade commission reports more than half of the population has experienced credit fraud. The continued persistent of ignoring the credit fraud problem will lead to lower consumer confidence and the reduced productivity for business owners. Main Body Credit Card fraud is the most common type of fraud committed currently against consumers.

Criminals pretend to be the victim; calling Credit Card Company’s and changes the victims mailing address on an active account. The necessary nformation needed for identity thieves is the credit card number, pin number and account number. The problem is the victim does not realize they Just became a victim of credit fraud until it is too late. The business owner in much the same manner becomes a victim. Imagine coming to work and discovering $20,000 dollars worth of merchandise missing without any transactions being placed. On the same day $20,000 dollars worth of inventory is sold and shipped to customers that never made transactions.

After several months the customer disappears, and now the business owner assumes the customer is claiming insolvency. If the criminals are good and can cover their tracks the business owner thinks it is Just insolvency. Not realizing the criminal had no intentions of paying, the business owner chalks it up to bad business and writes it off. The business owner never reports the criminal activity to the authorities. Both credit fraud scenarios and schemes described above cost consumers and business owners thousands of dollars annually. The most the victim’s name.

This is referred to as identity theft. Once the new account is established the new bills are forwarded to the new address, the victim does not ealize a problem exists until it is too late. The criminals use credit cards buying items and then never intending on paying the bills, this in turn ruins the victim’s credit. Criminals need certain types of information to commit identity theft, with as little as a stolen name, date of birth, and social security number, the identity thief can rack up several thousands of dollars causing major damage.

Working together both the consumer and business owner can aid each other in credit fraud prevention. Utilizing education initiated from the card issuers cover topics such as free credit eporting, safe computing, fraud alerts and network and computer security as well as initiatives from Visa and Master Card Payment Card Industry Standards, consumers and business owners are starting to fght back against credit card fraud and identity theft. Following these few security tips will provide the consumer with small but much needed education on credit fraud.

The business owner must be much more vigilant in regards to employee’s mandatory training, policies, and employee screening are musts for successful business prevention dealing with credit fraud. Counter measures that consumers and business owners can apply to everyday activity are to shred old documents, regulations dealing with storing credit card numbers, pins and personal identification information. Criminals need personal identification information, and one easy way to get this is to dumpster dive and to simply search through the trash or garbage.

Old credit card or debit statements and other financial documents provide perfect information. The monitoring of credit reports with a fraud alert will issue warning flags that a criminal might be using stolen identity information. This will then identify unfamiliar accounts or all together new lines of credit and enquiries the consumer did not make. An individual that is monitoring their credit report will be able to identify other credit report that the person never applied or asked to receive.

A credit report monitoring service will notify customers of any changes made to account that has a fraud alert posted to it within a day, so that the individual can look over the inquiries carefully. The safest way to purchase items via the Internet is by credit card because people can often dispute the charges if something is wrong. Make sure the transaction is made with a secure process prior to electronically sending credit card numbers.

You should also keep a list of all credit cards purchases and account information along with the card issuer’s contact information. If anything looks suspicious or a lost credit card is identified the consumer must contact the card issuer immediately. Business owners can provide and should aid the consumer with resources such as Department of Justice, Federal Trade Commission. The consumer should be aware that not all business will refund or stop all types of fraudulent transactions.

Again education yourself and using a combination of methods is the best defense against credit card fraud and identity More than half of all adults have experienced some type of cybercrime, and more than one in 10 blame’s them self, according to a new survey commissioned by Symantec and conducted by independent market research firm Strategy One. Gentry, C.. (2008, June). Risk-less Business. Victims fall prey to phishing attacks after mistaking the email for a legitimate message. In other cases respondents that use social networking profiles can also fall victim to these types of scams.

Social networks can also be a play ground for identity thieves where they approach you as a long lost friend and gain your trust, and eventually steal you information, or build an identity from the information on the victim’s profile. The process once discovered by the consumer is a lengthy and difficult problem to solve. The most important first step upon discovering that a person has become an identity theft victim is call and place a fraud alert on the debit or credit card accounts.

The business owner or manager can use the same approach by calling and reporting the potential insolvency. The business owner, if they do not report the incidents then little to no chance of catching the criminal therefore making credit fraud a lucrative and risk free operation. Credit fraud is something that can never be completely eliminated, but businesses should manage the problem and create a balance between safe credit usage and creating standards to tough for identity thieves and cyber criminals.

Support for consumers comes in various forms one being transaction processing firms, they devote significant amounts of time and resources to protect merchants from credit card fraud. Business employee’s wareness can also do a lot to hinder criminals by following a few simple precautions, such as matching the signature or account number on a customer’s credit card with the information on the sales receipt. Customers and business owners need to realize there are always going to be unscrupulous individuals looking for quick cash opportunities by cheating businesses and the consumer.

However, the more competitive business environment becomes the more likely a security mistake can and will happen. The necessity for trust between the customer and businesses means both parties will need to understand what protective measures are needed to emain secure. Criminals know their game well. Scam artists know the right trick to hook an inexperienced customer and business owner, and they know innumerable ways to fool the systems devised to stop them. Business owners need to make it as difficult as possible for a scam artist to succeed.

Conclusion Credit card fraud and identity theft are the single leading complaints filed with the Federal Trade Commission every year. Companies do not take proper precautions to protect customer information and employees do not properly verify customer information providing an open invitation to criminals. Wireless card and heck swipe machines are used today almost exclusively when a customer pays for their purchases. Extensive education and training are needed to protect businesses shields for sensitive, private information.

Clearly defined work procedures creating anti-fraud behavior will assist owners and managers. This same strategy will work to protect the consumer. Most customers find themselves today, trusting the business to protect vital information do not become the next victim. Complacency and lack of awareness are deadly combinations. Businesses need to ensure all assets are used to protect the consumer’s personal information. Businesses have an obligation to embrace the latest technology advances by doing so the business owner creates an environment safe for the owner and consumer.

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