RISK IN USING CREDIT/DEBIT CARDS, TACTICS IN DETECTING AND PREVENTING FRAUD

Анотація

As technology become, more advanced people are being accustomed to keep less cash on hands and rely on credit/debit cards, which have opened the door to many fraudulent transactions, and it is a global challenge which many banks are facing that requires a long-term solution. In last 5-10 years, many IT companies have focused on creating a software for these big organizations that can prevent further fraud and give people more freedom of using their cards more easily without becoming a victim. Nevertheless, the advanced software system which many giant banks are currently using is called Falcon Fraud Detection System which is a software specifically designed to track a fraud that is taking place all over the world. Moreover, Falcon Fraud Detection System has become a hub for bigger banks and it produces results more frequently because it’s reliable, user friendly, requires less training, catch a trend which fraudster uses with common vendors. However, we must not forget that these card frauds cause millions of dollar on monthly basis and to benefit society they have raised awareness programs, email campaigns, security updates via app banking where they are always alerting customers to use certain tactics on how to how to save yourself from becoming a victim of card fraud. A publication covering global payment systems, reported recently that global card fraud losses equaled $22.8 Billion Dollars in 2016 [1], by implementing having this fraud detection software even though it completely does not zero out fraud risk completely it surely reduce the numbers, and inform them of the trend that is being happening in today’s market. Additionally, card fraud remains a concern for a consumer and retailer everywhere. Falcon Fraud System recently revealed that criminals are using different tactics of using counterfeit technology chips in the ATM, EFPOS, and merchant machines in grocery store by putting a microchip and stealing customer data to create counterfeit cards. There has been 3-fraud detection techniques widely discussed and are used by these banks and they have implemented these techniques over fraud detection software. Firstly, genetic algorithms and a range of additional algorithms, this is created to establish logic rules that classify credit card transactions into suspicious and non-suspicious classes. This detection method has been proven when it comes to detecting and countering credit card fraud. This technique also incorporates range of methods that are used to predict any suspicious behavior [2]. Secondly, Clustering techniques are used to detect behavioral fraud. It allows for identification of accounts that are behaving differently from one another those accounts are flagged as being suspicious then fraud analyst proceed to investigate such discrepancies [2]. Lastly, Neural Network is also effective credit card fraud detection method but since all the data has to be clustered to the account, type it belongs to it is used less commonly then last two methods [2]. Creators of Falcon Fraud Detection system have created codes to use above methods in this system also block certain transactions while consumers can have the card in their possession. This technique has led to many fraudster think differently and finding other ways to bypass this software but since banks do have resources available they have invested smartly in this Falcon Fraud Detection system to minimize the losses and offer secured cards to consumers with advancing technology. Not everyone spends time checking his or her credit card transactions history when billed on monthly basis. Now days many people banking with multi national bank complain about the transactions they are billed on monthly basis for long period of time, which they have no knowledge off and never losing a card from their side, many times they cannot figure out the charges. Additionally, we can conclude not only there are risk continues to be on the rise for fraudulent card transactions but hackers also using technology wisely so people who do not check their card statements can also become part of their fraudulent scheme. Therefore, banks are always on the alert for the risk associated with increasing on using card and always finding ways to prevent or reduce the risks.