Credit Card Fraud is a grave problem in the credit card industry. Though many technologies have evolved to check these credit card frauds but still it persists.
Credit Card market started as a bipartite arrangement between the customer and the store. Such an arrangement was open to frequent fraudulent practices. But now-a-days the arrangements have become more complex, but actually it is a tripartite arrangement where the credit card company acts as a middleman between the customer and the store. Credit card issuing company extends payment to the merchants on behalf of the customers but in turn the customers remain liable of paying that debt to the credit issuing company within a specified time horizon.
Credit card fraud continues still despite invention of new technologies. The fraudsters get access to the informations of the card mostly through loss of credit cards from its owner. Theft of credit cards are also a frequent phenomenon. The thieves get access to these cards from houses or motor vehicles. Card swapping at ATMs also lead to this fraudulent practice. Pickpocketing also give the thieves access to the credit cards.
Many a times emails ask for the credit card details posing as the service provider for the credit card. This act of phishing gives the required information to the thieves in doing credit card fraud. Many a times people visit bogus websites and in the way give them the details of their credit card which also lead to credit card fraud. Many credit card holders are not serious about their possession and see the PIN code in public place. If any person gets this information then he could access the credit through the credit card which is known as skimming.
These are the various ways in which the credit card fraud takes place.