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The 8 Different Forms of Card Fraud

The 8 Different Forms of Card Fraud

Staying cautious about guarding your sensitive data can affectively minimize risk of theft or fraud — an imperative and essential step in today’s digital world. However, credit and debit cards have built in protection; the first line of defense indeed starts
with the cardholder. Here are 8 different forms of credit card fraud:
1. Lost or stolen cards – is a reasonably common form of fraud, and must be reported immediately to restrict any damages.
2. Account takeover – when a cardholder unintentionally provides his/her sensitive information (such as residential address, mother’s maiden name,and others.) to a fraudster, who then contacts the respective bank, claiming the owner of the card reports a lost card and change of address, and gains a new card in the soon-to-be victim’s name.
3. Counterfeit cards – when a card is “cloned” from another and then utilized to make purchases. In Asia Pacific, 10% to 15% of fraud consequences from frauds such as card skimming however this number has pointedly dropped from what it was a couple of years before, mostly due to the various safety features put in place for payment cards, such as EMV chip.
4. Never Received – when a new or replacement card is stolen from the email,at no time reaching its lawful owner.
5. Fraudulent Application – when a scammer uses another person’s name and information illegitimately to apply for and obtain a credit card.
6. Multiple Imprint – when a single transaction made by you is noted multiple times on old-fashioned credit card imprint machines called as “knuckle busters”.
7. Collusive Merchants — when a merchant staffs fraudsters to defraud banks.
8. Email order/telephone order (MO/TO) scam – this form includes e-
commerce, and dwell in the major category of total payment card fraud in Asia-Pacific, summing nearly three-quarters of all fraud cases reported. The payments industry is functioning diligently to advance card verification and security programs to restrict fraud in so-called “card-not-present” transactions online or through email order and mobile transactions.


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