Credit Cards Fraud

Credit Cards Fraud

Nowadays, computer technology is growing bigger and bigger. This tremendous and powerful improvement has its good and bad connotations. Credit cards are one popular invention of the computer era. According to www.1stamericancardservice.com, a credit card is a plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis. It has some advantages and disadvantages. Fraud is the main problem of the credit cards which it is presented and committed in different forms.

The credit cards present a list of good and bad points and this according to www.themint.org and acclaimcreditcards.hypermart.net. On one hand, advantages are well presented and carry lot of points. First, it is a safe alternative to cash. When you have your card in your wallet, you don't have to carry cash that can be lost or stolen. If your credit card is lost or stolen, you can report the missing card to the card company. The company will then stop accepting any charges on your card. What's more, you won't be charged for purchases made by someone else. You can also withdraw cash from many the branches of the issuing company or from various ATM's all over the word. Second, it builds a good credit history. If you use your card responsibly, you can begin to build a good credit rating for yourself. Later in life, when you need a loan, a lender will want proof that you pay your debts. A good credit card history will help you get your loan. A poor credit history will work against you. Another advantage is that the credit card bails you out of emergencies. Got engine trouble miles from home? Need to be towed? The tow truck and the auto repair shop will accept your credit card. Are you too far from home? Use your card to stay in a motel -- any phone calls home to describe your bad luck will be charged to your card, too. It also gives you time to pay. Depending on when you make your purchase and when your monthly bill comes due, you can get extra time to save up and pay for what you just charged. If you can pay off the bill entirely, you are really making the credit card work for you. Finally, credit cards payments are accepted worldwide. You can purchase practically everything (with in range of your credit limit) from anywhere in the world. You can pay for goods you buy and for the services you utilize. This can be done on the internet for instance. Credit cards give you the advantage of comparison shopping worldwide. It is the most convenient payment option for this scenario. As ecommerce becomes more and more prevalent, this comes closer and closer to a necessity. Some companies have created services which maximize Internet technology in this regard to full effect.

On the other hand, credit cards have many disadvantages. After all those great advantages, how can credit cards be so dangerous? It has to do either by the cardholder or by outside effects like security and fraud. The temptation to acquire too many credit card accounts can lead to losing track of payment details and deadlines. This can be disastrous. It can also lead to a false sense of security where customers continually transfer accounts to new services with lower interest. This rotating form of interest, if not properly disciplined and controlled can lead to ballooning payments when late payments occur. When this happens, the interest rate on even the lowest APR credit card can suddenly explode. Let's take an example shown in the mint website; whipping out a piece of plastic is so easy. It doesn't even feel like you're spending money. Do that enough times in a month, and surprise! Look at that balance ! Where did it come from? It came from all those not-so-big purchases you made over the month: That pair of shoes you just couldn't pass up is 79$, the night you were dying for pizza after you'd gone rock climbing is 24$, the great sale on baseball stuff is 65$ and those two new CDs that you just couldn't live without at 29$. Suddenly you're in debt. And you don't have the $197. So you pay $60, all you can afford. What happens next month? The $60 you paid the credit card company has made you short on cash this month; so you charge more, and your debt grows larger. Suddenly you're in debt. And you don't have the $197. So you pay $60, all you can afford. What happens next month? The $60 you paid the credit card company has made you short on cash this month; so you charge more, and your debt grows larger. Another disadvantage is that is difficult with understanding the fine print as relating to various fees and charges which may not be initially obvious. It is important to understand how the interest rates on credit card charges is calculated and it is particularly important to keep up with payments. Also, depending on the credit card company, it is possible that falling behind with payments will result in an interest charge on all future charges regardless of whether or not you settle your bill during the grace period and by the normal deadline. Moreover, one big disadvantage is that credit cards are open to fraudulent use. Using a credit card, especially remotely, introduces an element of risk as the card details may fall into the wrong hands resulting in fraudulent purchases on the card.

One reason people use credit cards is the convenience they offer. However, the ease with which these cards can be used also makes them very attractive to thieves. Credit card crime is on the increase. In this part I will show the real meaning of credit cards fraud, how and the ways it is committed, some statistics and statements, some late international cases related to credit cards fraud and cases related to this subject here in Lebanon.

According to nw3c website, credit card fraud is committed by any person who, for the purpose of obtaining anything of value with intent to defraud, uses a credit card that has been revoked, cancelled, reported lost, or stolen. According to Wall Street Words, in a country where consumers owe more than $1 trillion on their credit cards, estimates of $2 billion to $3 billion in credit card fraud losses may not seem all that terrible. That comes out to just two to three one-thousandths of one percent. But it is terrible to victims of fraud. Though they may be protected financially, they are forced to endure major inconvenience. Additionally, we all pay for the costs of fraud in the form of higher prices, higher interest rates and increased inconvenience. www.biovericom.com showed that credit cards fraud exceeded $