| In 2006 credit card fraud in Britain was said | | | | precaution, self-serve payment systems, such |
| to have cost £428 million, while in the | | | | as the ones in petrol stations and some |
| United States the cost reached a staggering | | | | supermarkets, are still fair game to most |
| $750 million. This "white collar crime" is | | | | fraudsters. Countermeasures such as asking |
| one that few fraudsters are ever fully | | | | for additional information i.e. a post code |
| punished for, due to the difficult nature of | | | | may deter some casual card theft but if the |
| identifying the source of the fraudulent | | | | thief has stolen a wallet, address |
| activity. | | | | information wouldn't take long to find out if |
| | | | a driving license happens to be in there too. |
| The compromise of credit card data can occur | | | | |
| by many common routes, most of which are | | | | Luckily, most banks and credit card issuers |
| undetected by the cardholder. A simple | | | | around the world are sympathetic to customers |
| example would be a shop assistant holding on | | | | who are victims of card fraud, with U.S |
| to transaction receipts for use later. | | | | federal law limiting the liability of |
| However, with the rise of the internet over | | | | cardholders to $50 in the event of fraudulent |
| the past ten years, database security lapses | | | | activity or theft. Many countries have |
| have become increasingly costly. | | | | similar systems to the former, with customers |
| | | | merely having to compare credit card |
| Stolen credit cards are usable until they are | | | | documentation with the issuer before signing |
| reported to the issuer and, while this is a | | | | an affidavit confirming that they knew |
| relatively simple process with most issuers | | | | nothing of the charges to their account. |
| offering a 24-hour free phone number, the | | | | Banks also have sophisticated systems for |
| rise in popularity of online shopping over | | | | detecting unusual card behaviour. For |
| the past ten years has meant many fraudsters | | | | example, a large transaction that has taken |
| can manage to purchase thousands of pounds | | | | place a long distance from the cardholders |
| worth of merchandise before the issuer and, | | | | address would be flagged as suspicious and |
| sometimes, even the card holder, knows the | | | | the bank would seek confirmation from the |
| card is in the wrong hands. Some thieves may | | | | cardholder in question before dispelling any |
| hoard a compromised account for weeks or | | | | theory of fraud. |
| months before indulging in any fraudulent | | | | |
| activity, making the root of the criminal | | | | Unfortunately, while there are several |
| activity difficult to discover. | | | | precautionary measures cardholders and banks |
| | | | can take to battle against these crimes, |
| The only common security feature on all | | | | there is no full proof solution to the |
| credit cards is the signature strip, but even | | | | problem, with banks and governmental agencies |
| that can be relatively easy to forge, leading | | | | promoting vigilance and increased awareness |
| many shops and merchants, particularly in the | | | | of criminal's tactics as the best way to |
| United States, to ask for photographic | | | | combat fraudulent behaviour in today's |
| identification when customers attempt to make | | | | society. |
| any payment via credit card. Even with this | | | | |