Sherlaine Tai
2003-11-25 16:53:39 UTC
There has always been a dispute whether of not credit card fraud is
more widespread online than in traditional forms of commerce. Of all the
sales transactions that occur over the Internet, it has been estimated
that 20 to 40% of them are attempts of fraud. Most people have the
impression that consumers is usually the victim of credit card fraud
when in fact online merchants, other wise called e-tailers, are forced
by credit card companies to bear the entire loss. If online merchants do
not have strict authorization policies or cannot control the number of
frauds or fraud attempts, then it will be extremely hard to stay in
business.
E-tailers have developed security protections that are way more
sophisticated than the credit card companies¹ security approval process.
Credit Card companies simply check if the number is correct and match it
with the customer¹s billing address.
Even though there doesn¹t seem to be any simple solutions, credit card
fraudulently is becoming ³identity theft², which was recently defined as
a serious federal felony. According to a credit/loss prevention manager,
cyber-criminals ³leave digital fingerprints and can get caught.² FBI
agent Charles Neal also indicated that they are planning to implement
more resources to catching and punishing cyber-criminals.
Visa quietly informed select merchants that 485 000 credit card
numbers were stolen from a major e-tailer in January 1999, however the
company tried covering up the issue in attempt to prevent consumers from
losing confidence in the company.
more widespread online than in traditional forms of commerce. Of all the
sales transactions that occur over the Internet, it has been estimated
that 20 to 40% of them are attempts of fraud. Most people have the
impression that consumers is usually the victim of credit card fraud
when in fact online merchants, other wise called e-tailers, are forced
by credit card companies to bear the entire loss. If online merchants do
not have strict authorization policies or cannot control the number of
frauds or fraud attempts, then it will be extremely hard to stay in
business.
E-tailers have developed security protections that are way more
sophisticated than the credit card companies¹ security approval process.
Credit Card companies simply check if the number is correct and match it
with the customer¹s billing address.
Even though there doesn¹t seem to be any simple solutions, credit card
fraudulently is becoming ³identity theft², which was recently defined as
a serious federal felony. According to a credit/loss prevention manager,
cyber-criminals ³leave digital fingerprints and can get caught.² FBI
agent Charles Neal also indicated that they are planning to implement
more resources to catching and punishing cyber-criminals.
Visa quietly informed select merchants that 485 000 credit card
numbers were stolen from a major e-tailer in January 1999, however the
company tried covering up the issue in attempt to prevent consumers from
losing confidence in the company.