Credit card
fraud refers to a scam or theft committed by making use of a credit card or
other similar payment method. When a person purchases something using the
credit card information of someone without their consent it is fraud. Mostly
people who want to acquire unauthorized funds from someone’s account commit
such frauds. There are many different types of credit card fraud that are committed and here are just a few of them:
- Non-Receipt Card Fraud:This type of fraud mostly occurs when your bank sends a replacement or a new card via mail and it never actually reaches the intended recipient. There are some banks that have overcome this issue by sending out inactive cards and then asking the clients to give them a call to activate the card. However, there are still some banks that have not adopted this method yet and are sending out the activated card through mail to their clients.
- Personal Card Fraud:This type of fraud usually happens when the card owner makes purchase but later claims that some other person has done it. The result of this is that the owner does not pay any money back to the bank as the card has already been reported stolen.
- Non-Receipt of Purchased Goods:This credit card fraud usually occurs when the owner purchases items through the card. However, when the person receives the statement of the purchase, they contact the company and claim that they have not received the items. The owner then claims that they never even authorized the transaction.
- Fraud by Employees:Sometimes employees are designated as a guarantor on business cards. At such times, the employee can purchase personal products and make the company pay for it by making use of the company card. However, such type of frauds mostly happens when the employee purchases low-priced items so that the accountants do not notice these changes. Even if the employee does commit a major fraud, he leaves the company before he gets caught and leaves no trace about his whereabouts.
- Stolen Credit Card Fraud: This is the most common type of scam where on person steals the credit card of another person to make purchases. Such type of fraud can also be made during online transactions.
- Forged Credit Card Fraud:This type of fraud usually occurs when an individual creates a fake card with a fake name and numbers and then starts using it for making purchases. Since the card has no link to an authentic account, no credit card company is responsible for the transactions made as there is no information about the user.
- Skimming:This type of scam usually occurs when someone makes a second copy of a credit card by stealing the information from the original owner. After which, they sell the cards to people who are involved in the forgery scheme and who make fake and multiple copies of the credit card.
There are
several types of credit card frauds
that are related to credit cards and there are also penalties for committing
these frauds.
