Avoid credit crad fraud

• How credit card works
• Types of credit card fraud
• Credit card crime
• Credit card hijacking

Credit card hijacking Credit Card Hijacking is the term used such as paper magazines where the when a person’s credit card subscriber has to periodically information is used for undesired proactively reauthorize the charges for goods or services where the subscription, hence the default is to credit card owner has trouble reaserting not renew.) The most common subscription control. This can occur in two major exit barrier is to not provide any forms. online subscription cancellation Credit Card Hijacking by Identity Theft mechanism at all, but to instead require The first form of credit card hijacking the user to cancel by telephone or by is basically identity theft, which is "on-line chats". Such organizations the deliberate assumption of another often add the additional barrier of person's identity. Identity theft is making any subscription cancellation usually the result of serious breaches information difficult for the user to of privacy and often involves the thief even find, thus creating an additional compromising a great deal of financial delay in the subscription cancellation. and personal information allowing the This is very common amongst ISP’s, who thief to open up new credit card know the psychological barrier to making accounts in the name of the victim. the call, which the subscriber Credit Card Hijacking by Cancellation anticipates will be unpleasant, is very Barrier high. It also allows the marketing The second form of credit card organization to talk the subscriber into hijacking, which most people have fallen changing their minds and not cancelling victim to, is the continued charging of the subscription. Another common a person’s credit card for a subscription cancellation barrier is to subscription to goods or services no have a relatively long subscription longer desired by the credit card owner. period, a no refund policy, and to This type of credit card hijacking was require the user upon cancellation to pioneered by major ISPs, credit forfeit all money covering the present monitoring services and online dating subscription period. This is very common services, is perfectly legal, and is amongst online dating services. still common today in a wide range of This second form of credit card subscription based goods and services. hijacking was created by marketers who Credit card hijacking of this type came recognized that subscription based about as online subscription based services generally have relatively low marketers realized that traditional periodic billings which will generally subscription systems, such as the annual go unnoticed on any given credit card subscriptions that paper magazines use, statement. So what happens is that long were an impediment to enrolling after the user loses interest in the customers. A typical dial-up ISP, at subscription, they forget to cancel the US$24.95 per month, is US$299.40 subscription and because the periodic annually. By breaking the subscription billing is so low, they don’t tend to period into small units like months or notice it on their credit card quarters, and allowing direct monthly statement. charging of the subscriber’s credit Credit Card Hijacking by Negative Option card, the psychological and economic Billing barriers potential subscribers see are Negative option billing is the practice greatly reduced. of sending goods automatically and The issue which makes one subscription billing the recipient unless the system a hijacking of the credit card is recipient is proactive in declining the not the mode of entry into the goods before they are sent. Negative subscription nor the billing interval, option billing reverses the usual but the marketing organization creating direcion of sales transactions. It barriers for the user to easily cancel assumes that unless you say 'no', you've the subscription. Organizations which agreed to have bought the goods. This is use credit card hijacking as part of the common practice used in book clubs, their marketing strategy make online record clubs, and magazine subscriptions registration for the subscription easy, with automatic renewal. Some enforce default automatic renewal practitioners of negative option billing policies, and create barriers to halting prefer to call it "advance consent the subscription. (This is in contrast marketing." to traditional subscription based system 1 A B C D E 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116