Slide 1What is credit card fraud?Credit Card Fraud By the Numbers2008 Top 10 IC3 Complaint CategoriesPopular Scams of 2008Merchant Prevention (Online)How your credit card company helpsWhat you can do to help prevent fraud.B y : J a s o n B a l t a z a rM I S 3 0 4Credit Card Fraud and PreventionWhat 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 NumbersIC3 (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.Email (74.0%) and web pages (28.9%) were the two primary mechanisms by which fraudulent contact took place.Individual ComplaintsIndividual PerpetratorsTop Countries by PerpetratorsCalifornia 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%2008 Top 10 IC3 Complaint Categories34.16%26.48%9.35%8.20%6.44%5.61%2.91%2.60%2.28%1.97%Non-deliveryAuction FraudCredit/Debit FraudConfidence FraudComputer FraudCheck FraudNigerian Leter FraudIdentityFinancial Institutions FraudThreatPopular Scams of 2008Fraudulent unsolicited e-mails to commit identity theft.FBI fraud emails.Lottery ScamUnauthorized access to your personal email address, and the fraudster sending phony distress emails to your contacts.Overpayment ScamRoommate scamEbay ScamsNo delivery or receiving inferior productsMerchant Prevention (Online)CVV/AVS VerificationShip to billCall credit card company to verify information.Call billing number to confirm orderIP AddressRed flagging bad ordersDatabase of all bad orders linking to any matching new order if information is identical.Release formAdditional documentsSmall charge verificationCalculating the level of risk based on the above factorsHow your credit card company helps24/7 Online and Telephone supportView pending transactionsLocking your credit card after suspicious activityData mining can help define and determine suspicious activityCall notificationWhat 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 serviceFreecreditreport.comPassword database
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