| One can hear many stories about credit card frauds. | | | | advantage. Shipping companies can only guarantee |
| These frauds can be explained as illegal use of credit | | | | prompt delivery of items to the suggested location. But, |
| card information of a customer for buying goods or | | | | they do not have the authority to verify the identity of |
| services. | | | | the cardholder. |
| There are different types of frauds that include | | | | Account Takeover: |
| stealing credit cards, compromising accounts, mail or | | | | This is another mode of credit card fraud. There are |
| internet order fraud, account takeover, phishing, carding | | | | two different types of account takeovers. In one |
| and skimming. We are going to discuss some of | | | | situation, false or counterfeit documents are created |
| common frauds that have started occurring with the | | | | and used to open an account on someone else's |
| advent of Internet. | | | | name. Sometimes, documents of a customer are |
| Mail or Internet Order Fraud: | | | | stolen and used for creating an account in another |
| This type of fraud occurs with online merchants or | | | | bank in the name of the customer. |
| traders who sell products or services through | | | | In another type of account takeover, personal and |
| websites. In case of online transactions, merchants do | | | | valuable information of the customer is gathered by |
| not have the facility for inspecting the details on the | | | | the scamster. Here, the scamster contacts the bank |
| card physically, a situation known are CNP or "Card | | | | over a telephone and identifies himself as the genuine |
| Not Present". In order to obtain the credit card details, | | | | cardholder before the card issuing bank. Then a |
| the cardholder is contacted by mail, telephone or | | | | request is placed with the bank to change the address |
| through a transaction gateway. There is no way of | | | | of communication. Using this changed address, the |
| verifying the identity of the customer in case of an | | | | criminal reports a card theft or a card loss and asks |
| online transaction except for the security verification | | | | for a replacement of the same. The new card is then |
| code or CVV number present on the rear of the card. | | | | sent to the changed address and is then used |
| Anybody can do an online transaction if the credit card | | | | fraudulently. |
| details are present. These details include name of the | | | | This said, if you follow all the safety procedures |
| card holder, expiry date on the card, credit card | | | | instructed by your credit card company, use of credit |
| number and the CVV number. This is the most | | | | card any where can be relatively safe. Make sure you |
| significant disadvantage of doing an online transaction, | | | | educate yourself well or else you can be a victim to a |
| an aspect that fraudsters can use for their own | | | | credit card fraud. |