Credit card fraud: awareness and prevention
| DOI | https://doi.org/10.1108/13590790810907236 |
| Published date | 10 October 2008 |
| Date | 10 October 2008 |
| Pages | 398-410 |
| Author | Katherine J. Barker,Jackie D'Amato,Paul Sheridon |
| Subject Matter | Accounting & finance |
Credit card fraud: awareness
and prevention
Katherine J. Barker, Jackie D’Amato and Paul Sheridon
College of Business, University of South Florida St Petersburg,
St Petersburg, Florida, USA
Abstract
Purpose – To make readers aware of the pervasiveness of credit card fraud and how it affects credit
card companies, merchants and consumers.
Design/methodology/approach – A range of recent publications in journals and information from
internet web sites provide corroboration and details of how fraudsters are using credit cards to steal
billions of dollars each year. Numerous schemes and techniques are described in addition to
recommendations as to how to help control this growing type of fraud.
Findings – Credit card fraud is a healthy and growing means of stealing billions of dollars from
credit card companies, merchants and consumers. This paper offers current information to help
understand the techniques used by fraudsters and how to avoid falling prey to them.
Research limitations/implications – This fraud relies on technology currently available and the
easy ability to obtain machinery to steal individual identities and account information, and to produce
fraudulent credit cards. Information cited is current but could change radically as technological
breakthroughs occur. The changing nature of technology also affects the recommendations made to
control this fraud.
Practical implications – A very useful source of current information on credit card fraud for bank,
credit card companies, merchants, and consumers.
Originality/value – This paper provides specific current information and recommendations
regarding a fraud topic that is of interest to a wide audience.
Keywords Credit cards, Fraud
Paper type General review
Skimming equipment: $300
Counterfeit card equipment: $5,000
Using a fake credit card: Priceless
Credit card fraud has been a world-wide problem for years. The effect of this fraud hits
not only the victims, but also the credit card companies and merchants. Perpetrators of
this type of fraud are successful by implementing various schemes, but only three will
be discussed in great detail: skimming, counterfeit cards and phishing. To deter credit
card fraud, credit card companies and merchants have put into place various
programs. Physical features of the cards have become more elaborate to eliminate
counterfeit cards. Prevention programs such as the card verification code (CVC),
advanced authorization, and card activation procedures have helped to decrease the
effects of fraud. Merchants are also implementing programs to help deter credit
card fraud. However, more steps need to be taken to prevent credit card fraud.
This paper concludes with four recommendations for credit card companies,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
JFC
15,4
398
Journal of Financial Crime
Vol. 15 No. 4, 2008
pp. 398-410
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790810907236
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