Internet and Merchant Related Credit Card Frauds 2021

 

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You can see Internet and Merchant Related Credit Card Frauds The Internet has provided an ideal ground for fraudsters to commit credit card fraud in an easy manner. Fraudsters have recently begun to operate on a truly transnational Understanding Credit Card Frauds Page 6 of 6 level. Merchant related frauds are initiated either by owners of the merchant establishment or their employees.

🔼 Internet Related Credit Card Frauds 🔼

With the expansion of trans-border or 'global' social, economic and political spaces, the internet has become a New World market, capturing consumers from most countries around the world. The most commonly used techniques in internet fraud are described below:

⏩ Site cloning:

Site cloning is where fraudsters clone an entire site or just the pages from which you place your order. Customers have no reason to believe they are not dealing with the company that they wished to purchase goods or services from because the pages that they are viewing are identical to those of the real site. The cloned or spoofed site will receive these details and send the customer a receipt of the transaction via email just as the real company would. The consumer suspects nothing, whilst the fraudsters have all the details they need to commit credit card fraud.

⏩ False merchant sites:

These sites often offer the customer an extremely cheap service. The site requests a customer’s complete credit card details such as name and address in return for access to the content of the site. Most of these sites claim to be free, but require a valid credit card number to verify an individuals age. These sites are set up to accumulate as many credit card numbers as possible. The sites themselves never charge individuals for the services they provide. The sites are usually part of a larger criminal network that either uses the details it collects to raise revenues or sells valid credit card details to small fraudsters.

⏩ Credit card generators:

Credit card number generators are computer programs that generate valid credit card numbers and expiry dates. These generators work by generating lists of credit card account numbers from a single account number. The software works by using the mathematical Luhn algorithm that card issuers use to generate other valid card number combinations. The generators allow users to illegally generate as many numbers as the user desires, in the form of any of the credit card formats, whether it be American Express, Visa or MasterCard.

 

🔼 Merchant Related Credit Card Frauds 🔼

The types of frauds initiated by merchants are described below:

⏩ MERCHANT COLLUSION

This type of fraud occurs when merchant owners and/or their employees conspire to commit fraud using their customers’ (cardholder) accounts and/or personal information. Merchant owners and/or their employees pass on the information about cardholders to fraudsters.

⏩ TRIANGULATION

The fraudster in this type of fraud operates from a web site. Goods are offered at heavily discounted rates and are also shipped before payment. The fraudulent site appears to be a legitimate auction or a traditional sales site. The customer while placing orders online provides information such as name, address and valid credit card details to the site. Once fraudsters receive these details, they order goods from a legitimate site using stolen credit card details. The fraudster then goes on to purchase other goods using the credit card numbers of the customer. This process is designed to cause a great deal of initial confusion, and the fraudulent internet company in this manner can operate long enough to accumulate vast amount of goods purchased with stolen credit card numbers.