NCJ Number
162347
Date Published
1994
Length
292 pages
Annotation
This report proves counterfeiting of plastic payment cards is an organized criminal enterprise that crosses national boundaries and affects Canada, Europe, the Far East, and the United States.
Abstract
Plastic payment cards represent a very successful exchange medium, with the global card payment system generating $880 billion in 1992. Annual payment card fraud costs the industry in excess of $1 million annually. These costs are negligible when measured against volume but are significant when measured against profit. Although counterfeiting typically accounts for just 26 percent of total fraud losses, this percentage continued to grow at an alarming rate in 1992. Organized criminal groups are involved in payment card counterfeiting, and the arrest of 186 criminals in 86 different locations throughout the world documents the extent of the problem. Organized crime has been relatively successful because payment cards are almost universally accepted as a substitute for cash. The payment card system is very competitive, and industry and law enforcement responses have been uncoordinated and inconsistent. Payment card security features can be improved but counterfeiting will never be eliminated, mainly because law enforcement agencies have competing resource demands and payment card fraud is typically not a high priority for many police agencies. The challenge is to identify and prevent counterfeiting at an early stage. Ways of reducing the impact of organized plastic counterfeiting are discussed, along with the need for better intelligence and the importance of establishing a partnership between industry and law enforcement. Supplemental information and forms related to payment card fraud are appended. 8 charts