| In this issue of our series on credit | | | | no other reason than to make sure he |
| card fraud we're going to dig a little | | | | keeps his mouth shut. In some cases the |
| deeper into some facts and figures that | | | | money goes to the merchant and the bank. |
| will most certainly raise the hair on | | | | Yes, there are some crooked banks out |
| the back of your neck. | | | | there, especially overseas in countries |
| In plain dollars and cents, a single | | | | that will remain nameless for fear of |
| credit card fraud can, and has, | | | | gun toting gangsters being sent over |
| accounted for about forty-million | | | | here to settle a score. |
| dollars in just one year alone. That | | | | If, however, the fraud IS detected then |
| translates to about 900,000 victims in | | | | the money does get repaid to the victim |
| 22 countries. That's a lot of people | | | | but in most cases less than the under |
| and a lot of money and that's just ONE | | | | $50 amount that the banks have to pay. |
| fraud. For those wondering, this | | | | In other words, the victim doesn't |
| particular fraud involved adult web | | | | completely come away from this |
| sites, but credit card fraud was going | | | | unscathed. Many European banks won't |
| on long before the Internet came to be. | | | | pay up at all. As for the merchant |
| What IS new is the ability to run this | | | | account, they don't want to suffer |
| fraud across the entire world with just | | | | losses, so many times they will simply |
| a mouse click and attack thousands of | | | | just close up and reopen under a new |
| people in a very short period of time. | | | | name. |
| The Internet has simply given a very old | | | | Because the system itself is weak, the |
| scam new legs. It has brutally exposed | | | | thieves themselves are rarely caught, |
| the security problems with our credit | | | | and then when they are, they rarely get |
| card system and takes advantage of these | | | | punished to the extent that they should. |
| leaks to the max. | | | | The problem with the system is that is |
| The particular fraud mentioned up top | | | | was designed for buying physical goods |
| was perpetrated by a company called J K | | | | with the card holder being physically |
| Publications. If you want to read about | | | | present. With Internet transactions the |
| the details of this fraud you can do so | | | | cardholder no longer has to sign for the |
| in the August 1999 issue of Scientific | | | | transaction, at least not in the usual |
| American. Needless to say, it is some | | | | way, and this makes it way too easy to |
| juicy reading. | | | | cheat the system. |
| So just where does the money go when a | | | | In our next article in this series we'll |
| company or merchant or even individual | | | | look more into the problems of the |
| perpetrates a credit card fraud? Well, | | | | system and what victims of fraud can do |
| if the fraud goes undetected in most | | | | to help protect themselves, or for that |
| cases the money goes to the merchant | | | | matter prevent themselves from being the |
| himself with the middle man, if there is | | | | victim of credit card fraud. |
| one, usually getting paid a cut, if for | | | | |