Mark Rimkevicius

Professor Haney

ENGL 1001

31 October 2017

Effectiveness of Credit Card Fraud

What would you do if your whole life savings was just taken away? Seems quite

shocking, right? All those hard worked hours and savings just gone. Being a victim of fraud is

not a fun experience. Especially when you lose $48.53. Even imagining what it would be like

losing all of our savings money, is just hurtful. Lots of people end up taking years to get back up

on their feet from fraud. These crimes happen almost every day and people just don't realize it.

The effect of fraud can lead to life ruined situations, short term, as well as long term. The

innovation of technology has led to an increase of fraud victims, damaging lives across the

world.

Credit card (or debit card) fraud is a form of identity theft that involves an unauthorized

taking of anothers credit card information for the purpose of charging purchases to the account

or removing funds from it (NW3C, 2017, p. 1). Credit card fraud is one of the deadliest form of

fraud. There can be frauds with little amount of money that can be quickly resolved, but there

could also be fraud with an insane amount of money that could lead to long term problems. With

the increase innovation of technology, more and more people are affected by credit card fraud

each year. The 2017 Identity Fraud Study released today by Javelin Strategy & Research

revealed that the identity fraud incidence rate increased by sixteen percent, a record high since

Javelin Strategy & Research began tracking identity fraud in 2003 (NW3C, 2017, p. 1). Many

people believe that the innovation of technology decreases fraud, but based on statistics they

are wrong.
 There are many different kinds of ways that people can be affected by credit card fraud.

From as simple as having your credit card stolen, to as complex of an account being hacked

into and being taken over. The most common way of credit card fraud, is haven your card stolen

and just used at local stores or even for online purchasing. Many Americans are always in a

hurry and just put their card wherever. The lack of awareness, puts many Americans in a

position where they could become a victim of credit card fraud. These people then later have to

go through so much problems, where as if they just stopped for a moment and put their card

where it belongs, they then wouldnt be involved in such a mess. One method of obtaining

account information is through postal theft which involves a thief searching your mail box to

steal credit card company statements They may even obtain a renewed card ready for

activation (NW3C, 2017, p. 1). It is scary to think that thieves could go looking around mail

boxes to take your credit card and purchase as many things as they want without you even

noticing.

Another common way of being affected by credit card fraud is by your account being

taken over by a hacker. You may provide personal information to a person that sounds

trustworthy, then a couple hours later, they are able to use all that information to buy anything

they want in the power of your name. From a quote stated by (NW3C), A desktop computer

system with peripheral equipment makes it relatively each for a counterfeiter to transform stolen

data into a fraudulent debit or credit card. As crime-fighting technology has improved,

counterfeiting has become a multi-step process involving lamination, holograms and encoded

magnetic strips. This quote clearly shows us how easy it is for thieves to recreate a credit card

using your information with the advancement of technology. Americans are known to be really

kind people and people that can be manipulated easily into given their information out. This

causes an increase in the amount of fraud victims in America. There are many credit card fraud

victims in the U.S and people need to be more aware and careful so that they dont end up
being a victim.

Sam Nelson first noticed the fraudulent charges on his credit card about a week after

they happened over the summer (Matt Baker, Tampa Bay Times). Sam was charged with

many small amounts from place such as Chick-fil-A, Lyft, and even by some 44-year-old

resident that lives in Georgia. Victims are usually charged to places that are commonly used by

society as well in small amounts that are mostly no greater than $50. Sam said that he had no

idea that it was even happening, until he looked at his bank account a week after all these

charges were taken place.

In the article by (Matt Baker, Tampa Bay Times), The Tampa Bay Times reached out to

a dozen of them Wednesday. A husband and wife inTulsa, Okla. A paralegal in Carlsbad,

Calif. And Brad Kolean, who works in law enforcement in Arizona.. These people were all

affected by credit card fraud. One of them was traced back to a defensive lineman from the

Florida Gators football team. He used Kolean credit card information to make payments to his

transportation and parking account. The amount was nearly $1,450! "It's a big pain," Kolean

said. According to the author (Matt Baker, Tampa Bay Times), He spent time on the phone with

his bank and businesses updating accounts. He had to wait for a new card. Some utility

companies charged him late fees after failed auto draft attempts. And one way or another,

Kolean said, the costs go back to consumers like him. "We all end up paying for it," he said. "It's

not just me that's a victim. Everyone's a victim of it. ... They have to be made an example of.".

Kolean had to go through many different phone calls and transaction to resolve the situation. It

Is even unknown if he got his money back. This situation shows us that even people that are

uneducated have the technological ability to take credit card information and use it to benefit

themselves. It also shows us the mess that people have to go through and how serious

amounts of money can be taken away from a person.

 A more complex situation arose earlier in the year of 2017, when Chipotles computer

systems got hacked into. These hackers used malware that was able to detect peoples credit

card information. If you used your credit card at a Chipotle, you could have possibly been a

victim of credit card fraud. The malware searched for track data (which sometimes has

cardholder name in addition to card number, expiration date, and internal verification code) read

from the magnetic stripe of a payment card as it was being routed through the POS device

(Natt Garun, 2017, p. 2). Its crazy to think that by using your credit card to purchase something

that you would like, could also put you at risk of being a victim. Chipotle was also unaware if any

money was stolen. Not only does the advancement of technology increase credit card victims, it

also disallows people to trace back to the actually thiefs. The thieves that hacked into Chipotles

database system were even able to make sure that some people wouldnt even notice that

money was being taken out of their account.

There are many situations where people are not even at fault if they become victims of

credit card theft. Clearly such fraud can cost the banks a lot of money. It is not surprising that

they go to considerable trouble and expense to detect unauthorized transactions and so prevent

incorrect payments being made (Porkes and Mason, 90). This statement said by Porkes and

Mason is very true, but has some twist to it. Banks do go through a lot of time and money to

resolve your problems. But if the bank cant find any evidence of the amount of money takin is

fraud, then the chances of you getting your money back is very low. Banks need to have more

security on their technology and databases to make sure less peoples accounts are being

hacked into.

Preventing credit card fraud is vital. Because of the amount of credit card usage across

the world, it makes it a lot easier for thieves to steal your information. There are many

preventative steps that people can take to avoid being at risk of credit card theft. Another step

to prevent credit card fraud is to eliminate the opportunities for it to take place. Credit card
owners should only carry cards that are used on a daily basis. Consumers should leave most

credit cards at home in a secure place. People rely on credit cards to pay at restaurants, movie

theaters and stores, so they need to pay attention to who is handling the card (Brody, Richard

G. 101). Many people believe that having many credit card is cool and needed. People

also lack the knowledge of knowing that it is always better to pay in cash then credit card. If

you can get cash, it is always best to pay with cash rather than a credit card. You never

know who the person is dealing with your card, as well as if the systems have been hacked

into.

Another step you can take is to be more cautious on who you give your credit card or

personal information out too. If making an online purchase, you want to make sure there is

always a lock on the top of your search panel. Also, never give out information about your

social security and credit card information over the phone. Many people get phone calls that

sound so realistic to the point where they give out their information. For you to feel safe,

always have transactions that involve social security numbers or credit card information,

done in person or at a trusted location. Many people also brush off a situation where they

were charged a small amount for something that they did not purchase. If you see

something as little as 10 cents taken out of your account for something you did not

purchase, you should immediately take action and call your bank or the credit card

company. The effect of brushing off situations like these can cause more small amounts of

money to be taken out of your account, adding up to a huge sum in the long run.

People also have to be very careful on how they throw away their credit card

statements as well as their credit card applications. Lots of people either just throw it away

in the trash without shredding it or they just rip it up in half. Not shredding credit cards that

you will not use or banking statements, increases the risk of you being a victim of credit
card theft. Not shredding your statements or useless credit cards allows thieves to put the

information back in order and use it on behalf of your name. When you shred a credit card,

it is nearly impossible for someone to be able to use it. If youd like to avoid the process of

shredding or having to worry about your paper statements being stolen, you can request

your bank to send your statements electronically. But this also can cause a hacker to hack

into your email and be able to access all the information.

Last but not least, the silliest, but most effective way of avoiding credit card theft is to

wrap your credit cards in foil before you place them in your wallet or purses. Wrapping foil

around your cards covers up the radio chip inside your credit card. When the radio chip is

impossible to access in your card, it makes it impossible for the hacker to access

information about your card. If you think wrapping tour card in foil is just plain stupid, you

can purchase a metal wallet that is that blocks RFID signals.

Credit card fraud is quick and can often go unnoticed; until people realize that they are

losing lots of money for no reason. Criminals intentionally scam and ruin people lives to benefit

their own. The constant evolvement of technology allows hackers and thieves to gain

confidential information within a very short period of time. Often these thieves are the people we

trust the most, such as people that call on the phone and pretend to be the IRS. Credit card

fraud has greatly increased, and people need to become more aware of the strategies that are

used to steal their personal information. Credit card fraud is a significant threat to the economy

and government today. In response, banks and the government continue to develop new

methods to protect us from being a victim. As long as there will be dishonest and greedy people

in the world who continually seek out ways to take money from people, we always need to be

careful and aware of credit card fraud. As credit card transactions increase all over the world,

the likeliness of being a victim also rises. Because of the innovation of technology in todays
world, people must stay informed at all time, of the drastic advances in technology.

Works Cited

Brody, Richard G., et al. "Proliferation of Credit Card Fraud with Current Technological

Advances." Insights to a Changing World Journal, vol. 2014, no. 2, June 2014, pp. 92-107.

EBSCOhost.

Porkess, Roger and Stephen Mason. "Looking at Debit and Credit Card Fraud."

Teaching Statistics, vol. 34, no. 3, Sept. 2012, pp. 87-91. EBSCOhost, doi:10.1111/j.1467-

9639.2010.00437.x.

Matt Baker, Times Staff WriterLinkView all Articles, et al. Victims of Florida Gator Credit

Card Scandal Speak Out. Tampa Bay Times, Tampa Bay Times, 27 Sept. 2017,

www.tampabay.com/sports/college/victims-of-florida-gator-credit-card-scandal-speak-

out/2339074.

Wire, CNN. Multiple Gwinnett Chipotle Restaurants Hacked with Credit Card Stealing

Malware. Gwinnett Daily Post, 31 May 2017, www.gwinnettdailypost.com/local/multiple-

gwinnett-chipotle-restaurants-hacked-with-credit-card-stealing-malware/article_e3f63e66-460b-

11e7-9aa1-d393dee7f1e1.html.

Garun, Natt. Chipotle Says 'Most' of Its Restaurants Were Infected with Credit Card

Stealing Malware. The Verge, The Verge, 26 May 2017,

www.theverge.com/2017/5/26/15701776/chipotle-restaurants-hacked-credit-card-malware.