| An easy and short definition of small business fraud | | | | There are several ways how credit thieves get |
| states that it is a fraudulent transaction that is | | | | access to victim's account to get engaged in credit |
| conducted by stolen small business credit card or | | | | fraud and use available cash for fraudulent purposes. |
| stolen card information. Such fraud usually results in | | | | Card thieves can: |
| illegitimate purchase of goods and services. | | | | 1. Steal victim's card (including stealing from the mail |
| A sophisticated definition of small business credit card | | | | box) |
| fraud defines it (sometimes referred to as Credit | | | | 2. Stealing victim's credit card information (looking over |
| Fraud) as an illegitimate operation using personal or | | | | the shoulder, examining victim's trash, looking at |
| small business credit cards or card information that is | | | | personnel records in an organization) |
| used for paying for the fraudulent transaction. The | | | | 3. Taking over victim's account (through false e-mail, |
| ultimate objective of such transaction is buying | | | | unauthorized telephone conversation) |
| products without actually paying for them or illegally | | | | Internet is a main source of credit fraud. When a |
| transferring funds to the account. | | | | customer makes a purchase through Internet, a sales |
| If you think that you are a victim of small business | | | | person does not have possibility to physically inspect |
| credit card fraud, the first thing you should do is report | | | | the small business credit card; therefore he/she relies |
| to your card issuer and even block your card, if | | | | on provision of credit card information by mail, phone |
| necessary. | | | | or online form. This creates a fertile ground for credit |
| In USA out of $1 trillion that consumers have available | | | | fraud, since delivery companies are not required to |
| on their cards only $2-3 billion is estimated to be fraud | | | | check identification of the receiver of the good. The |
| loss. This makes a tiny fraction of one percent that | | | | only thing that merchant can do is that he/she may |
| may seem that alarming. However the consequences | | | | require delivery of goods to the address approved by |
| of fraud may be extremely disturbing for the victims. | | | | cardholder. Besides small transactions are not |
| Although in USA victims are insured towards financial | | | | controlled if fraudulent transactions are conducted |
| loses, however the costs are the inconvenience, higher | | | | carefully, their detection becomes less likely. |
| interest rates and fees by which banks cover losses. | | | | |