Credit card fraud creates an alluring and exploitable opportunity for a subset of unethical individuals to engage in illicit activities. Credit card fraud is a serious crime, often with links to other serious felonies such as organized crime, international narcotics trafficking, and terrorist financing (Sanjeev, 2009). It is not a localized incident impacting a single victim, but rather a global problem that is costly to all members of society. As the costs of fraud are spread across banks, merchants, and consumers, the threat is directed towards economic degradation and collapse (Sullivan, 2008).
It is suggested that inadequate fraud controls and outdated technology create an environment for credit card fraud to prosper. This research outlines the most common types of credit card fraud and recommendations for preventing fraudulent activity. Several case studies illustrating the different types of credit card frauds are analyzed, and a review into technological weaknesses and common fraud investigative techniques are discussed to raise awareness for financial institutions and fr...
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...2009). Credit card fraud detection with discrete choice models and misclassified transactions. (Unpublished MBA Thesis). University of Chicago, Chicago, IL.
Pun, J., Lawryshyn, Y. (2012). Improving credit card fraud detection using a meta-classification strategy. International Journal of Computer Applications, 56(10), 41-46.
Sullivan, R. (2008). Can smart cards reduce payments fraud and identity theft. Economic Review, Retrieved from http://go.galegroup.com.ezproxy.fau.edu/ps/i.do?id=GALE %7CA189486001&v=2.1&u=gale15691&it=r&p=
Sullivan, R. (2010). The changing nature of U.S. card payment fraud: industry and public policy options. Economic Review. Retrieved from: http://go.galegroup.com.ezproxy.fau.edu/ps/i.do?id=GALE %7CA233963353&v=2.1&u=gale15691&it=r&p=AONE&sw=w&asid =61ce05cd2368e9b68cbaa4281d3d32ec
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