NCJ Number
99417
Journal
Security Systems Administration Volume: 14 Issue: 8 Dated: (August 1985) Pages: 14-17,35
Date Published
1985
Length
5 pages
Annotation
This article lists 26 major credit card security problems faced by banks, merchants, and law enforcement agencies and recommends policies and procedures that can help prevent or reduce credit card fraud.
Abstract
Banks contribute to the high incidence of such fraud by having inadequate authorization procedures, out-of-date hot lists, and inadequate screening procedures in issuing cards. Banks also fail to investigate complaints when issuing credit, cancel cards that have been used fraudulently, obtain valuable information on possible offenders when an authorization is denied, and provide fraud control education for merchants. Merchants often accept fraud losses, fail to provide adequate fraud detection training for their clerks, have no fraud management plan, and take inadequate security precautions in checking customer identification and in handling credit card slips and carbons. Concerning law enforcement, problems arise from inadequate manpower for handling the large volume of credit card fraud, the low priority given to credit card fraud investigations and drug trafficking, and ineffective control of prison inmates who commit fraud by telephone.