Card Skimming Essay Example for Free

Card Skimming Essay assurance Card Fraud is one of the biggest threats to business establishments today. Originally, reliance throwaways bargonly carried raised numbers that were transferred to a carbon copy with a instrument panel-swiping machine. The merchant simply accepted any cod presented. Spending limits and printed lists of at sea/stolen cards were ineffective in preventing spoof and former(a) financial losses. Merchants were required to mobilise a transaction authorization center to get pre-approval of the transaction. The volume of telephone traffic grew to a fault great, and more automated authorization systems allowed faster, easier, and verified transactions. Magnetic stripes on the backs of these earnings cards started to appear and that allowed computers to be used at both ends of the call. The raised letters and numbers on the plastic cards are now rarely used or even read.This then gave stand to skimming devices that could be used by some unscrupulous persons to electronically scan and save the nurture from many customers cards. Techniques such as skimming, in which criminals capture card information and personal-identification numbers, give up existed for years, often on a small scale. A growing security concern with Skimming devices is the possible release of the substance abusers personal information or location to unauthorized parties. So, what is now needed is a delegacy to increase the security of payment card use at merchant locations.Problem StatementCredit Card Fraud poses one of the greatest risks to businesses nowadays. As card business transactions increase, so too do frauds. According to the Jamaica Observer dated March 2010 The National Commercial Bank (NCB) yesterday revealed that it lost more than J$100 million to identification card fraud last year, put merchants on guard against what it said was a rising problem. Most cases of counterfeit fraud involve skimming. The fraudulent activity on a card affects ev erybody, i.e., the cardholder, the merchant, the acquirer as well as the issuer (bank). Several methods have been proposed in order to stop this. One such method adopted is a method of chips build into the card adding a layer of protection. The good news is that technology for preventing reference book card frauds is improving with the modulation of time.Purpose StatementThis paper will describe the development of a system to provide objective time detection of fraud attempt so as to increase the security payment of belief cards use at merchant POS locations. Research QuestionsWhat is credit card fraud?What is skimming?How are cards skimmed and reproduced?What are the implications of credit card fraud?Can this type of fraud be prevented?If so, how can this type of fraud be prevented?SignificanceAbout J$245.1 million has been lost to credit card fraud in Jamaica for 2009 (Jamaica Observer). In 2010 Europe, which has showcased a bigger problem than the U.S.A saw card-skimming att acks take off 24% in the first six months to 5,743, the largest six-month number since data gathering began in 2004, according to the European ATM Security Team, a non-profit group. Consumers face trouble trying to get fraudulent charges reversed, merchants lose the woo of the products sold have to pay chargeback fees and fear from the risk of having their merchant account closed and loss of reputation. The issuers and acquirers as well as have to make huge investments in preventing frauds by deploying sophisticated IT systems for detection of fraudulent transactions. They also face financial and product losses, fines, loss of reputation and possibly loss of license if not compliant to credit card standards. This research study could provide information on how to helper maintain the cost of fraud and losses due to fraud and help to put this at a manageable level. It will help acquirers and issuers to equip themselves with a counterattack to possible threats and that can help pro tect the user and the merchant from fraud. rendering of TermsCredit Card Fraud is defined as when an individual uses another individualscredit card for personal reasons while the owner of the card and the card issuer are not aware of the fact that the card is being used. Card Skimming is a process where genuine data on a cards magnetic stripe is electronically copied onto another.References Listhttp//www.jamaicaobserver.com/business/NCB-puts-customers-on-credit-card-guard_7505969http//online.wsj.com/articles/SB10001424052748703688704575621122308129984http//quotes.wsj.com/IT