Credit Card Frauds RP PPT - NE218286
Credit Card Frauds RP PPT - NE218286
Credit Card Frauds RP PPT - NE218286
IV THE CONCLUSION 24
Banks has used the Technology and most of the Banks has used the CBS which facilitates the user to
avail the services with out visiting the Bank offices .
RBI adopted the new system for clearing and settlement system and adopted a computerized system in
1988.
The Indian Government has brought Payments and Settlement System Act(PASS) in 2007 which will
enable smooth process of various payments under banking system .
The National Payments Corporation of India (NPCI) 2008 , has introduced the various Payments
System for larger payments as well as retails Payments . For Instance , RTGS, NEFT, IMPS and UPI etc.
Payments
1.Cheques
RTGS
2.DD's Credit Card
NEFT
3. Payment Orders Debit Card
etc
CA. NAGARAJA EMMADI - FAFD 172 BATCH BANGALORE
INTRODUCTION – HISTORY OF THE CREDIT CARD AND BANKING PAYMENT SYSTEM
EVALUATION
The Evaluation of E-Payments and Concept Of Plastic Money was introduced by banks . For Instance , Debit Card ,
Credit Card and Online Payments etc.;
Credit Card (CC) : “ CC are one of the instruments of the payment which allows the user to make payment for
purchases of goods and services”
Revolving Facility .
The First Credit Card was Introduced In The World The First Credit Card Introduced In Indian
Year Innovation
1946 First Bankcard, named “Charge-It”, was introduced by John Biggins, a banker in Year Innovation
Brooklyn.
1950 Dinners Club Card is the next development in the field of a credit card. 1981 Andhra Bank and Central Bank of India has introduced the credit card.
1951 Frankin National Bank in New York’s Starts a credit card plan.
1959 American Express Introduce the Plastic Card. 1989 ANZ Grindlays Bank came with Classic Card.
1966 Barclays Bank was the first British bank to introduce credit card known as “Barclays
card”. 1990 Citi Bank’s Master Card became popular.
1966 National credit card system was formed by the Inter Bankcard Association. This Card
is known as the Master card. Formerly the credit cards are issued only to the local
customer of the Bank.
1977 Lloyds Bank introduces “Access Card.”
The above Diagram Represents the Various parties to the Credit cards 1. The Various Parties to the Credit Card Transaction .
transactions and Brief details as below
Consumer : The holder and Initiator of The
Transaction .
Merchant : Who accepts and Collects the Money
for Exchange of Goods / Services .
Processor : Facilitator for communication of the
transactions .
Card Network : Receives information from Processor
and Pass it to Bank .
Consumer Bank : It Allows the processor to release the
Payment to Merchant upon verifying
the Various parameters of the
transaction .
Nowadays, all banks are issuing the credit card which is mainly for shopping and some credit cards included travel
privilege. Below are the type of cards which are used in India , Their Brands will be either of VISA , MASTER or
RuPay etc.
SBI Card Elite
Simply CLICK SBI Card
HDFC Regalia First Credit Card
ICICI Bank Platinum Chip Card
Indian Oil Citibank®Platinum Credit Card. And
HSBC Platinum Credit Card.
FRAUD : With Reference to RBI Study Group on Larger Banks has defined the fraud as below
“A deliberate act of omission or commission by any person, carried out in the course of a banking transaction or in the books of
accounts maintained manually or under computer system in banks, resulting into wrongful gain to any person for a
temporary period or otherwise, with or without monetary loss to the bank”
Deliberate Act of Omission or Commission
By any Person
In the course of Banking Transaction / Books of accounts Maintained
Manually / Computer System
Wrongful Gain to a Person
Temporary Period or Otherwise
With or Without Loss .
RBI has replied to query raised an activist for Credit card frauds
and debit cards frauds from January 2015 to December 2017.
Credit Cards Frauds of 35,551 and amount to the tune of Rs
14,165 lakhs .
Debit Card Frauds 21,860 and amount to the tune of Rs 14,869
Lakhs .
RBI circular-Dated July 2017 for the protection of customer in
case frauds .
There are Several ways and Means to do the credit cards Frauds by utilizing online and offline resource and the
history of frauds which are occurrence through credit card given below
Method Percentage
Loss or stolen Card 48%
Others 5%
Traditional Techniques
Application Frauds : Stealing of Personal Information .
Account Take Over: Hijacking of Personal accounts of Others and Modify the
credentials so that will be utilized for personal gain.
Intercept Fraud : Stealing the Credit card Information through the postal
before it’s reaches to the beneficiary .
Lost or Stolen Card : The fraudster will utilize the stolen/ lost credit card
information to do the fraud.
Merchant Collusion : The Merchant or Employees of the Merchant collude to
do fraud by utilizing their customer card Details .
Card present Fraud : The card will be present while doing the credit card
Fraud .
Modern Techniques
Fake Cards : Creating the Duplicate card which will be used to purchase of Goods and
Services .
Doctored Cards : By Erasing the Metallic Strip of the Existing Credit Card , alter details
on the card to match those of a valid card
Skimming : Coping the Information stored in Magnetic Strip to another Magnetic strip
and creating the another card .
Site Cloning : The Fraudster will clone the entire business site of the merchant and
steal the customer information whoever do the on line transaction through the website
.
False Merchant Site: This is more similar to Site cloning but here the customer will
enter the details for verification of age where the fraudster steals the information from
the customer.
Triangulation : The fraudster will act as middleman between customer and Merchant.
Card Not Present (CNP) : These frauds will be done through the email, telephone , or
over the internet.
The Credit Card frauds are day by day showing the upwards
trend which will impact the following parties in terms of financial
and other damages .
The Cardholder
The Card Holder will be least impact on credit card frauds if the cardholder
takes the precautionary steps on time which has provided by RBI and other
rules and regulations of the Banks .
Merchants :
The merchant will be having the high impact with credit card frauds which
will be included cost of goods , shipping cost , card association fee, merchant
bank fee , administrative cost and loss of reputation .
Implementation phase
This involves implementation of Prevention and Detection system by
the stake holders of the credit cards transaction .
There will be a training system for the stake holders who will
implement the prevention and detection system .
The User has to take the following precautions to avoid the credit
card transactions .
Be an alert customer
Fraudsters are continuously finding new ways to trick you. The only way
to avoid such tricks is to be watchful and take utmost care of your credit
cards.
The Cardholder should take the following steps when they comes
know the fraud
Compliant to Bank and Customer care centre of the Bank
Document Evidence
Timing and Days of reporting