Beware of Credit Card Fraud - Some Traditional and Modern Techniques Used


Humans are greedy; we all know that, but one thing we can never understand completely is the limit to this greediness. Man works to earn. So that he could earn his living and fulfill his basic needs. But what if he starts earning through illicit means? Then there are constitutional obligations which make him liable for penalties and punishments.
Nature punishes mankind in various ways for not abiding to its fundamental rules. Similar is the case with technology. In case of credit cards, people do manipulate the transactions to gain money out of it. Credit card is often called as plastic money. There is a magnetic strip over every credit card which stores the information about the card holder's identity and his account details as well. There are various techniques of credit card fraud.
Credit card fraud is categorized into two basic categories depending upon the method of fraud conducted, which are traditional techniques and modern techniques of card fraud. Cards have made shopping very easier. Some of the traditional techniques used for cards frauds are:
• Application fraud- people submit forged applications by providing incorrect monetary information about their bank accounts and income statements. 
• Intercept fraud- stealing the card, before reaching its final destination. That is stealing the card during post or courier transportation. 
• Lost or stolen card- most common style of fraud but the most difficult to deal with.
Credit card prevents the user form he hassles of carrying hard cash in their wallets, which is truly insecure. People often use their cards to make payments for their purchases where they are unable to make one time down payment. They can then pay the rest amount in various installments.
But there are swindlers and scam artists who manipulate the privacy settings of the card information and perform card frauds. Technology can be altered in one's interest or favors by manipulating the in-built system.
As technology has provided ample knowledge to the youngsters about its origin and systems, it has made them aware of its use as well misuse too. Card companies take proactive actions to avoid such scams and frauds in advance, but even then there are possibilities of fraud and manipulation.
Modern techniques for credit card fraud are like:
• Skimming 
• Fake or doctored cards 
• Triangulations 
• Credit card generators 
• False merchant sites and site cloning.
Fraudsters abuse technology to produce fake cards to coddle in false card transactions. They use powerful electro-magnet to erase the details present in a card, and change those details to match the other card's details. Fraudsters often create fake merchant sites. Such fraudsters attract customers by providing heavy discounts on purchases and after that, they ask for card information to verify the order. This way they easily get access to the card information of a valid customer, which can now be used as per their intentions.
The best way to avoid such credit card frauds is to stay cautious about your cards, just the way you stay cautious about your cash.
Get more knowledge about various credit card fraud and know to tackle with them. Also look for the help in personal finance site for your various personal finance issues.


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