Fraud in the Cards

Credit Card Misuse Explodes Globally

 


Fraud examiners can help tackle the problem by exposing credit card fraudsters' methods and by promoting training in the cards industry, government, and law enforcement. 

"Diamond jewelry worth $12,500 bought in Memphis!" exclaims the senior oil executive in Kuwait, after seeing his latest credit card statement from his bank. "I haven't bought any diamonds in my life! Where did these come from?"

" A large-screen TV bought in London!! I haven't been to London in the past 6 months," protests the CEO of a Hong Kong financial consultancy firm, after opening his billing statement.

"Jewelry purchases, restaurant charges, video CDs, laptop bought in Sydney!! I only used my card when I went on holiday with my family to Malaysia and Singapore last month! How did these appear on my bill?" screams a senior manager in a Bombay global bank.

These are typical responses of thousands of credit card holders across the world when they see their monthly bills. They are a part of the global credit/debit card theft in excess of USD $1 billion in 2001, according to Visa and MasterCard global fraud figures. Although fraudulent transactions on cards are less than 1 percent of the total general-purpose card billing volume, according to the card companies, consumers are still quite susceptible to thieves. Banks have to devote considerable time and resources in fighting card fraud.

Fraud examiners can help tackle the problem by exposing credit card fraudsters' methods, and by promoting training in the cards industry, government, and law enforcement.


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