Common Credit Card Fraud Techniques To Be Vigilant About

Dependent on the type of business you are in, you may have to be more vigilant about credit card fraud than other sectors. For example, with gas station credit card fraud an issue for many vendors of petrol, extra protective technology to ensure that the business doesn’t sustain losses can be important. In this article, we are going to look at how credit card fraud works – giving you a full insight into the techniques used so you can reduce the risk of losing money.


Fact one: There are different types of credit card fraud


Whereas there are some traditional techniques that are used by fraudsters, such as intercepting cards that have been applied for by consumers in the post, or by providing illegitimate information in application forms, new credit card fraud types are entering the market. As the technology available to hackers and criminals is ever-changing, it pays to be attentive to the latest risks in the finance industry.


Credit card fraud skimming is where genuine information about one card is passed onto another card – most likely without the consent of the original consumer. This means that purchases can be made from businesses like yours through fake cards – with data on the magnetic strip or in the chip simply transferred onto a new piece of plastic. Even though it may seem simple enough, such an operation normally involves many complex pieces of machinery and some advanced hacking ability, and so beating the criminals can be a challenge in itself.


Fact two: The Internet has changed the nature of credit card fraud schemes


Even though the Internet has been a blessing for many of us, it has also changed the ball game for the millions of businesspeople who are trying to protect their finances, as well as keeping the credit card data of their consumers secure. A common risk due to spam emails and phishing websites is where hackers create a fake duplicate of an existing website in order to usurp credit card information under false pretences. Once all of this data has been gathered, their details can then be used for the financial gain of the criminals behind the scheme. 


Fact three: Identity theft credit card fraud can occur in two different ways


When it comes to credit card fraud and identity theft, there are two separate approaches that can be used illegally. First of all, criminals may adopt consumers’ identities in order to take advantage of credit cards they currently have, or they may use information they have about a consumer and apply for new cards under their name, using their credit rating. Not only can this damage the financial reputations of those involved, but it can also result in losses that can’t be recouped if bank credit card fraud is the problem. In countries such as the UK, unauthorised purchases made on credit cards can be refunded, but any unauthorised withdrawals made on debit cards cannot be returned as easily – placing bank customers at an elevated risk. 


Fact four: Business credit card fraud among your employees is yet another issue


Identity theft and credit card fraud can also occur in the workplace, especially if you administer business credit cards to your employees so they can reclaim expenses on items such as petrol. Through ensuring that you have a dedicated team of financial advisors keeping an eye on expenditure, you can prevent unwanted abuse that can result in irretrievable losses and a bad credit card fraud identity theft experience. Many credit card companies have provisions in place to assist in this dealing with this issue.  For instance, American Express business credit cards offer spending limits on employee cards so you can still have the convenience of giving employees a payment vehicle without worrying about them spending too much. 


Fact five: Nigerian credit card fraud and check credit card fraud are still issues in today’s economy


Even though the use of checks is slowly dwindling as a form of payment, Nigerian credit card fraud is still something to worry about. Through falsified emails and fake pleas from Nigerians for financial aid, many scammers are getting the details of thousands of vulnerable consumers from around the world.


As a business, you need to ensure that you are protected from all of these risks, and one such way to do so is through checking the BIN numbers database. Through being extra careful by analysing the credit cards you do handle, you can prevent any questionable forms of payment slipping through the net.