16.13.1.Types of fraud
Fraudulent transactions may include chargebacks
or credits issued to consumers claiming fraudulent
use of their accounts.
16.13.1.1.Card-not-present (CNP) fraud
This includes fraud over the internet, telephone, fax
and mail order perpetrated when criminals obtain
payment card details to make fraudulent
transactions. Because neither payment card nor
cardholder is present at the cashier, businesses
cannot check the physical security features of the
card to determine if genuine.
16.13.1.2.Card skimming
A counterfeit payment card is made by fraudsters
using a skimming technique where the card’s data
on the magnetic stripe (on the back of the card) is
electronically duplicated onto a blank card. Cards
are skimmed using a device that is fitted to a cash
machine, a PIN pad or card reader. Another ploy is
to use card readers to capture card details
elsewhere, e.g. in restaurants or gas stations. The
card is placed through a device without your
knowledge or card readers and small cameras
attached to cash machines where cameras film the
PIN that is keyed in.
16.13.1.3.Lost and stolen card fraud
The actual payment card is physically stolen or lost
and a criminal poses as the card holder.
16.13.1.4.Card ID theft
This criminal activity involves stealing details other
than the data on the payment card such as personal
information used to open or take over a card
account in the original card holder’s name.
16.13.1.5.Mail interception
Criminals steal a replacement card or new payment
card from the mail and use them to buy goods. At
risk are card holders with communal letter boxes,
living in flats or student residence halls or who have
moved and failed to redirect their mail.