CREDIT CARD FRAUDS IN MOBILE AND WIRELESS
COMPUTING ERA
There are new trends in cybercrime that are coming up with mobile computing, mobile
commerce
(M-Commerce) and mobile banking (M-Banking). Credit card frauds are now becoming
commonplace
given the ever-increasing power and the ever-reducing prices of the mobile hand-held devices,
factors that result in easy availability of these gadgets to almost anyone. Mobile credit card
transactions are now very common; new technologies combine low-cost mobile phone
technologies with the capabilities of a point-of-sale (POS) terminal.
Today belongs to "mobile computing," that is, anywhere anytime computing. Wireless credit
card processing is very desirable system, because it allows businesses to process transactions
from mobile locations quickly, efficiently and professionally.
Flow diagram of transactions involved in purchases done using credit cards.
Tips to Prevent Credit Card Frauds
1. Make the photocopy of both the sides of your card and preserve it at a safe place to remember the
card number, expiration date in case of loss of card.
2. Change the default personal identification number (PIN) received from the bank before doing any
transaction.
3. Always carry the details about contact numbers of your bank in case of loss of your card.
4. Preserve all the receipts to compare with credit card invoice, Reconcile your monthly
invoice/statement with your receipts.
5. Report immediately any discrepancy observed in the monthly invoice/statement
6. Ensure the legitimacy of the website before providing any of your card details.
7. Report the loss of the card immediately in your bank and at the police station, if necessary.
Types and Techniques of Credit Card Frauds
Traditional Techniques
• Application Fraud : Application Fraud is the use of false information or stolen personal data to
gain access to services, or financial resources.
• Application Fraud can involve creating fraudulent accounts, manipulating existing accounts, and
more
• individuals can give false information about his or her financial status to acquire credit
• Illegal use of lost and stolen cards is another form of traditional technique. Stealing a credit card
is either by pickpocket or from postal service before it reaches its final destination.
Modern Techniques
• Triangulation: The criminal offers the goods with heavy discounted rates through a
website designed and hosted by him, which appears to be legitimate merchandise
website.
• The customer registers on this website with his/her name, address, shipping address
and valid credit card details.
• The criminal orders the goods from a legitimate website with the help of stolen credit
card details and supply shipping address that have been provided by the customer
while registering on the criminal's website.
• The goods are shipped to the customer and the transaction gets completed.
• The crminal keeps on purchasing other goods using fraudulent credit card details of
different customers till the criminal closes existing website and starts a new one.