Plastic card circumvention an infirmity of authenticity and authorization
| Published date | 08 May 2020 |
| Pages | 959-975 |
| DOI | https://doi.org/10.1108/JFC-03-2020-0034 |
| Date | 08 May 2020 |
| Author | Vipin Khattri,Sandeep Kumar Nayak,Deepak Kumar Singh |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Plastic card circumvention an
infirmity of authenticity
and authorization
Vipin Khattri
Department of Computer Application, Integral University, Lucknow, India and
Department of Computer Application, Shri Ramswaroop Memorial University,
Barabanki, India
Sandeep Kumar Nayak
Department of Computer Application, Integral University, Lucknow, India, and
Deepak Kumar Singh
Department of Information Technology, Jaipuria Institute of Management,
Lucknow, India
Abstract
Purpose –Currency usage either in the physical or electronic marketplace through chip-based or magnetic
strip-based plastic cardbecoming the vulnerable point for the handlers. Proper education and awareness can only
thrive when concrete fraud detection techniques are being suggested together with potential mitigation
possibilities. The purpose of this research study is tendering in the same direction with a suitable plan of action in
developing the authenticationstrength metric to give weightage marks for authentication techniques.
Design/methodology/approach –In this researchstudy, a qualitative in-depth exploration approach is
being adapted for a betterdescription, interpretation,conceptualization for attaining exhaustive insights into
specific notions. A concrete method of observation is being adopted to studyvarious time boxed reports on
plasticcard fraud and its possible impacts.Content and narrative analysisare being followed to interpretmore
qualitativeand less quantitative story about existingfraud detection techniques. Moreover,an authentication
strengthmetric is being developedon the basis of time, cost and humaninteractions.
Findings –The archived data narratedin various published research articles represent the local and global
environment and the need for plastic card money. It gives the breathing sense and capabilities in the
marketplace. The authentication strength metric gives a supporting hand for more solidification of the
authenticationtechnique with respect to the time,cost and human ease.
Practical implications –The research study is well controlled and sufficient interpretive. The empirical
representation of authentication technique and fraud detection technique identification and suggestive mitigation
gives this research study an implication view for the imbibing researchyouths. An application and metric based
pathway of this research study provides a smoother way to tackle futuristic issues and challenges.
Originality/value –This research study represents comprehensive knowledge about the causes of the
notion of plastic card fraud. The authentication strength metric represents the novelty of a researchstudy
which produced on the basisof rigorous documentary and classified research analysis.The creativity of the
researchstudy is rendering the profound and thoughtful reflectionof the novel dimension in the same domain.
Keywords Authentication strength metric, Authentication technique, Fraud detection system,
Fraud detection technique, Multifactor authentication, Plastic card fraud
Paper type Literature review
The authors give our thank and gratitude towards the Integral University for supporting research
work and providing Manuscript Communication Number-IU/R&D/2019-MCN000664.
Plastic card
circumvention
959
Journalof Financial Crime
Vol.27 No. 3, 2020
pp. 959-975
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2020-0034
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
1. Introduction
The plastic card payment is a legacysystem for the online payment process (Figure 1). The
evolution of card payment started in 1946, which named as Charge-it, and John Bigins
(Cashco, 2018) created it. After that, many business companies introduced various types of
cards. Currently, financial companies are using Chip and Pin cards for online transactions.
The plastic card implemented because of the ease, need of the users and the safety of the
money. The genesis behind the formation of theplastic card payment system was to reduce
the risk in the case of large-scale cash-relatedsecurity with the banks, merchants and users.
The transaction system requires details of the plastic card (Zareapoor et al., 2012;
Papadopoulos and Brooks, 2011). Thisease of use of plastic card also gives opportunities to
the fraudsters for committing plastic card fraud. In the current scenario, fraudsters attack
the sentiment of the human to steal all the information which is required to perform a
fraudulent transaction. In other words, trends of plastic card fraud are changing
dynamically.
In authentication of plastic card transaction, various security features are already
implemented, such as card verification value, personal identification number, 3-D secure
password and chip and pin (Khattri etal., 2020a,2020b;Sahin and Duman, 2011;Wong et al.,
2012). Despite these security features, the impact of plastic card fraud cannot ignore, andit
is increasing at an alarmingrate (Maes et al., 2002;UK Finance, 2019;Arthur Williams, 2007;
Bai and Chen, 2013). In outlook of the impactof plastic card fraud, it has been taken from the
reports of the Australian payment system (Australian Payments Network, 2018;Australian
Payments Network, 2017;Australian Payments Network, 2016;Australian Payments
Network, 2015) and demonstrated statistics using the graph from the year 2010 to till 2017
(Figure 2). It includes four categoriesof fraud in which are lost/stolen cards, skimming card,
card not present and other card fraud. This graph shows that the loss of the amount is
increasing every year. Especially in the case of card-not-present fraud, it is exceptionally
high. Where the loss of amount in 2010 was $204.5m, it increased to $561.3m in 2017. This
loss means that card fraudhas increased about 2.75 times from 2010 to 2017.
For accomplishing the goal of the study, this paper has been divided into five segments.
The second segment renders the prevention techniques, including multifactor
authentication. This segment also explores the relationship of various factors such as time,
cost and human ease on different authentication processes and proposes an authentication
strength metric (ASM). The third segmentshows the various detection techniques of plastic
card fraud along with the information of the datasets and evaluation metrics used in the
Figure 1.
Plastic cardonline
transactionsystem
JFC
27,3
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