Payment-Card-Fraud
Payment-Card-Fraud encompasses a range of illegal activities where credit, debit, or other payment cards are used without the owner's consent to make unauthorized transactions. Here's an in-depth look at this issue:
History
The history of payment card fraud dates back to the inception of credit cards in the 1950s. Initially, fraud was relatively simple, involving theft of physical cards or counterfeiting. However, as technology advanced:
- In the 1970s, magnetic stripe technology was introduced, which led to an increase in card skimming.
- By the 1990s, with the rise of the internet, online card fraud became prevalent.
- The 2000s saw the introduction of EMV-Chip technology, which aimed to reduce fraud by making cards more secure, but fraudsters adapted by targeting regions where chip technology wasn't widely adopted.
Types of Payment-Card-Fraud
- Card Skimming: Criminals use devices to capture card information during legitimate transactions.
- Phishing: Fraudsters trick individuals into revealing their card details through deceptive emails or websites.
- Card-Not-Present (CNP) Fraud: Transactions where the cardholder does not physically present the card, common in online and phone purchases.
- Application Fraud: Opening new accounts using stolen or fake identities.
- Account Takeover: Hackers gain access to a cardholder's account and change details to make unauthorized purchases.
Impact
Payment card fraud has significant economic and personal repercussions:
- Economic Losses: According to Nilson Report, global card fraud losses were estimated at $28.65 billion in 2018.
- Consumer Impact: Victims can suffer financial losses, time spent on dispute resolution, and damage to credit scores.
- Business Impact: Companies face direct financial losses, potential fines, and reputational damage.
Prevention Measures
- EMV-Chip technology has significantly reduced fraud in countries where it's widely adopted.
- Tokenization replaces sensitive card data with a unique identification symbol, reducing the exposure of actual card details.
- Two-Factor Authentication (2FA) adds an extra layer of security for online transactions.
- Consumer education on protecting personal information and recognizing phishing attempts.
Legal Framework
Legislation varies by country but often includes:
For more information, you can refer to:
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