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