Information Security – Credit Card Fraud

Everything you should know about credit card fraud and how to stay safe

by

By 2020, that number is expected to reach US$31 billion.
Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers’ liability at US$50 as long as the crime is reported within 30 days for credit cards and within two days for debit cards.
But there are two main categories: card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder’s information is stolen and used illegally without the physical presence of the card.
Once that data is used to make a purchase, the consumer’s account is charged.
The mechanism of a credit card transaction Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement.
At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorise or reject a given purchase.
Once a purchase had been authorised, there is no going back.
Then, the card issuer physically delivers the credit card to the consumer.
To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank.
Based on my research, which examines how advanced statistical and probabilistic techniques could better detect fraud, sequential analysis – coupled with new technology – holds the key.

All You Need to Know About Credit Card Fraud

by

All You Need to Know About Credit Card Fraud.
Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers’ liability at US$50 as long as the crime is reported within 30 days for credit cards and within two days for debit cards.
But there are two main categories: card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder’s information is stolen and used illegally without the physical presence of the card.
This kind of fraud usually occurs online, and may be the result of so-called “phishing” emails sent by fraudsters impersonating credible institutions to steal personal or financial information via a contaminated link.
Once that data is used to make a purchase, the consumer’s account is charged.
The mechanism of a credit card transaction Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement.
At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorise or reject a given purchase.
Once a purchase had been authorised, there is no going back.
Then, the card issuer physically delivers the credit card to the consumer.
To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank.

Hackers nab credit card data from up to 1,000 California Realtors

by

Hackers nab credit card data from up to 1,000 California Realtors.
Just over 1,000 California Association of Realtors members may have been affected by a breach of the online store they use to buy everything from blank home sales contracts and disclosure forms to books, software, magnets, lapel pins and coffee mugs.
The malware attack, which occurred from March 13 through May 15, prompted CAR subsidiary Real Estate Business Services to notify the affected 1,033 members last week their personal data may have been stolen while using payment cards such as credit cards for online purchases.
“We’d like to keep ahead of these guys, but these guys are so smart it’s sickening,” Ferrier said.
The breach was discovered after a member called and said, “My credit card got hacked.” Apparently, illicit charges to the member’s card were made right after he bought something online at the store.car.org site, the REBS web address.
The malware made it possible for hackers to get a user’s name, address, payment card number, card expiration date and, in some cases, the three-digit card verification code (or CVC) — in short, everything needed to bill charges to a customer’s account.
REBS has changed its payment processing, using PayPal rather than taking payment card data directly.
Although 1,033 members used their payment cards to make purchases during period REBS computers were infected, Ferrier said she doesn’t know how many cards were hacked.
REBS is advising members to monitor their account statements, review their credit reports and consider placing a fraud alert on their credit reports.
If members have questions, they can contact REBS at 213-739-8283.

Credit card fraud: Why RBI has done well to put onus on bank customers

by

Credit card fraud: Why RBI has done well to put onus on bank customers.
Besides the complexity of online transactions vis-a-vis cash, one of the hurdles for online payments has been concerns over security.The rising number of hack attempts on banks has made people sceptical.
While the government has tried to solve the first—it has launched three iterations of its payment service—the new guidelines released by RBI will probably address the second.
The central bank, on Monday, notified limited liability rules in case of card fraud.
RBI has highlighted that the customer will only be liable in case of her own fault, while in other cases, she would bear zero liability.
Banks, if informed within three days of a third-party breach, would have to give the customer the entire amount in her account.
Surely charging banks for this can’t be an option?
The rules also leave a vacuum in terms of security of third-party e-wallets.
What the central bank can do is make OTP mandatory for all transactions.
Aadhaar can also be an answer to the bank’s woes.

Possible credit card skimmer found on Buffalo gas pump

by

Possible credit card skimmer found on Buffalo gas pump.
Autoplay:Play Video0:00 0:00: 0%: 0%LIVE -0:00 BUFFALO, N.Y (WKBW) – The Consumer Credit Counseling Service of Buffalo is now warning people to use caution after a possible credit card skimmer was found on a gas pump in the City of Buffalo.
Buffalo Police were called to the Delta Sonic location at 1192 Main Street after employees discovered the suspicious device.
Experts say skimmers will often have a small camera placed nearby to record your pin number entry.
Delta Sonic released the following statement concerning the incident: “Due to a widespread national concern of credit card skimmers, Delta Sonic Carwash commenced a vigorous prevention and detection initiative several years ago.
Initiatives include but are not limited to confidential security measures, multiple daily internal inspections and inspections by state / county weights and measures departments.
Delta Sonic will work closely with the Buffalo Police Department while also continuing to be diligent in the protection of customer credit cards. ”
Consumer Credit Counseling Service of Buffalo recommends checking a card reader at ATM’s and gas pumps to see if it is loose.
If you suspect that you are the victim of credit card skimmer, report the incident to your bank.
File a police report and submit a complaint to the Federal Trade Commission: https://www.consumer.ftc.gov/blog/avoid-skimmers-pump Also, let employees at the business know so they can take the appropriate actions.

CT BBB: Letting retailers store credit info is risky

by

Allowing an online retailer to keep your credit card info on file seems like such an easy way to streamline your shopping.
“This is now an important consideration because of the number and types of data theft over the past several years,” said Connecticut Better Business Bureau spokesman Howard Schwartz in a news release.
“The theft of personal information from medical insurance companies, restaurants and retailers has chipped away at consumers’ trust of how their information is handled.” Our credit and debit card numbers are exposed more than ever before, and saving your credit card information on a retailer’s computers leaves that information open to theft.
BBB offers the following tips for safe online shopping: Exercise your rights – In most cases, merchants will ask if you’d like them to keep your credit card number on file.
Remove your credit card information – Some online merchants do not ask if you’d like them to store your card information, but after you have made a purchase or logged-in to your account, look for the option to remove your payment information from companies’ files.
Hackers can set up a fake network with a name similar to that of the store, coffee shop, retailer or library where free Wi-Fi is offered.
If you connect to it, they can get into your files and steal your information.
However, with a debit card, cybercriminals can empty your bank account after a data breach.
If there are unusual or unauthorized charges, call your financial institution right away.
In addition, check sites you usually visit to remove your debit or credit card information if you’d prefer to avoid the risks of a data breach.

Disruptive Technology and the Plastic in Your Wallet

by

It’s no longer an esoteric or ethereal concept – it’s real.
Rapid growth of payments processing options Credit card companies are not immune to these changes.
Soon, all conventional credit card machines will be replaced by this smart encryption technology.
Banks and non-bank financial institutions are all plowing significant resources into developing their iOS and Android apps to make it possible to transact seamlessly, effortlessly and instantly.
This trend has increased in recent years, thanks to the strong appeal of disruptive technology.
The use of Big Data has gained traction across the board.
Much the same is true of Visa, American Express, and other credit card providers.
Of course, the rise of one technology such As Big Data necessitates greater investment in securing that information.
Companies are playing catch-up with payments processing options to meet market requirements for enhanced security.
Credit card companies are not waiting for the disruptive effects to cause an avalanche in the industry – they are leading from the front with innovative digital payment models that are changing the e-commerce landscape forever.

Credit Card Fraud: What You Need To Know

by

Credit Card Fraud: What You Need To Know.
Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers’ liability at US$50 as long as the crime is reported within 30 days for credit cards and within two days for debit cards.
But there are two main categories: card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder’s information is stolen and used illegally without the physical presence of the card.
Once that data is used to make a purchase, the consumer’s account is charged.
Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement.
At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorise or reject a given purchase.
Then, the card issuer physically delivers the credit card to the consumer.
To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank.
Based on my research, which examines how advanced statistical and probabilistic techniques could better detect fraud, sequential analysis – coupled with new technology – holds the key.
First, never click on links in emails that ask you to provide personal information, even if the sender appears to be your bank.

Credit card fraud: what you need to know

by

Credit card fraud: what you need to know.
Such costs include, among other expenses, the refunds that banks and credit card companies make to defrauded clients (many banks in the West cap consumers’ liability at US$50 as long as the crime is reported within 30 days for credit cards and within two days for debit cards.
But there are two main categories: card-not-present (CNP) frauds: This, the most common kind of fraud, occurs when the cardholder’s information is stolen and used illegally without the physical presence of the card.
Once that data is used to make a purchase, the consumer’s account is charged.
The mechanism of a credit card transaction Credit card fraud is facilitated, in part, because credit card transactions are a simple, two-step process: authorisation and settlement.
At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorise or reject a given purchase.
Once a purchase had been authorised, there is no going back.
Then, the card issuer physically delivers the credit card to the consumer.
To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank.
Rejection may be issued only in two situations: if the balance on the cardholder’s account is insufficient or if, based on the data provided by the merchant’s bank, there is suspicion of fraud.