Credit Cards Article

What is being done to stop Internet business credit card fraud?

Author: Warren James

When imagining an Internet fraudster it is easy to picture either a spotty teenage, computer savvy and with too much time on his hands, or a sinister shadowy figure lurking behind rows of cascading algorithms, like someone from the Matrix films. As the Internet largely involves anonymous people interacting it is quite difficult for criminologists to build up a single criminal profile; if you search the Internet for \'profiles of credit card criminals\' this ambiguity quickly becomes apparent. Although both these stereotypes exist, credit card fraud has become big business and is now more likely to be undertaken by highly sophisticated criminal gangs.

These figures do need to be put into perspective though and should be compared to the huge increase in online card use. Since 2000 online card use has risen by 871%. It is estimated that more than 30 million people now shop online. Back in 2005 the average person spent £165 online; nowadays this figure is substantially greater. It is estimated that in 2009 more than 15% of all of the UK\'s shopping will be done over the Internet. It would seem that the rise in crime is proportionate to the amount of money now spent online shopping.

One effective type of Internet fraud is a kind of cyber-confidence trick known as \"phishing\". Criminals will send out emails, either to a single victim or en mass, asking for card details. These emails usually appear to be official emails from banks, retailers, and so on. One scam involved sending an invoice for a Dell computer, that hadn?t been purchased, and asking for card details to \'cancel the order\'. As you can see from this example the creativity of these criminals knows no bounds. Another type of crime is simply involves hacking into existing company?s records and stealing card data in bulk. This type of crime is more difficult and much more challenging for the hacker.

Even though the Internet isn\'t the thieves playground that some might lead you to believe, there are some hazards. By far the most common way for a criminal to gather card details online is through a technique known as phishing. Phishing is a form of cyber-crime, similar to a confidence trick. It is also described as a way of social engineering, where criminals make people do what they want in order to get their details. Phishing involves the sending out of emails, either to a specific target or to millions, asking for card details. These emails often appear to come from an official source, a bank or company. The creativity and ingenuity that goes into these emails is remarkable.

The most common type of Internet card crime is known as \'card not present\' crime. This is when a criminal uses the card details that they have stolen to purchase something for themselves. In 2007 there was ?290.5 million pounds lost in the UK through \'card not present\' crime; this was up 37% on the previous year. This is a vast amount even when you consider the increase in popularity of Internet shopping (in 2005 Brits spent an average of ?165 online). Often banks will return any money that is stolen from you and then track down the thieves with the help of the police.

Perhaps the greatest reassurances that a financial service provider can give are fraud guarantees. Many card providers will not penalise people who have been the victim of fraud, will return any money stolen and work with the police to find the fraudster. It is an eye opener to realise that stolen credit card detail are sold for 25p in batches of 10 or 20 in Internet chat rooms. In 2006 the same card details were sold for slightly more at a pound. With stolen card details costing so little it is easy to see how many details are stolen on a daily basis.

Warren James writes articles for various popular websites. Read about business credit cards and business credit card offer here