Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Various Methods Used by Companies for Credit Card Fraud Detection

By Anthony Taylor Subscribe to RSS | May 7th 2012 | Views:

Fraud detection of credit card transactions has become very significant these days due to increasing frauds taking place while one makes online payments. Hence, it is essential to keep a regular check on your credit card transactions. It is better to be careful beforehand, about the credit card fraud detection as the recovery of the transactions is a complex and time consuming task. A complete check of the credit card transaction should be kept by checking frequently for the online transactions, which you make through your credit card. In case of credit card theft, it should be reported immediately to avoid further misuse. It is essential to place your credit card safely, just like you place your cash. A credit card holder must be aware of the possible fraudulent activities that can occur through his card. Some common kinds of credit card frauds which occur are:

• The credit card statements for your card transactions are not being delivered.

• The credit card statements for your card shows transactions which you have not made.

• An unknown transaction has been made over the internet through your credit card for which your consent was not taken

• Your PIN code details get disclosed

Fraud Detection methods used by credit card companies:

With the increase in use of credit cards for making electronic payments the risk of fraudulent activities has also increased. There are certain ways by which the credit card companies can detect the fraud which has occurred through any credit card. The likeliness of a credit card theft increases more when the credit card is not signed at the back by the original customer and has lost it physically. Some well known methods employed are:

1. There is consumer database that is maintained by the company which depicts the customer credit card usage since the first use to the date. The place where a transaction is made is also recorded. Hence a transaction that is made at two places, on same time with a very little time difference might also be flagged. Such incidents can also be investigated further, to look for any possible fraud that had occurred.

2. Credit card companies also track the maximum and minimum amount for the transactions that are made by a particular customer. It can be understood easily, that incase a person is trying to use a stolen credit card, he might not be aware of the credit limit of that card. Hence, if he tries to use the card beyond its credit limit, an alert would be sent to the credit card company and a red flag could be raised immediately over it.

Credit card fraud detection is becoming easier with the number of checks that are now associated with the use of credit cards for purchases. Companies accepting credit card payments should be aware of detection methods in order to safeguard from any such fraudulent activities which might occur.

Anthony Taylor - About Author:
Anthony Taylor is an expert in Internet security issues and has been associated with AlgoCharge, which is one of the leading online payment services for effective fraud detection. The company offers an integrated solution to credit card fraud detection, bank transfers and other alternative payments using advanced algorithms.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

Understanding the importance of geophysical surveys, void detection and resistivity imaging
Published by Wendyaguiza on June 30th 2012 | Business
Using a top quality surveying company is becoming more and more important as engineering designs are...
Useful information about consumer fraud act & associated laws
Published by Safinajones on February 29th 2012 | Business
The consumer protection laws and the consumer fraud act are immensely helpful in protecting the righ...
How to find the best fraud solicitor
Published by Edward Charles on March 23rd 2012 | Business
If you are accused of benefit fraud, the first question that comes in your mind is how to find the b...
Widespread occurrence of Insurance fraud and control by Best Private Investigator
Published by Jonathan Robinson on December 22nd 2011 | Business
Insurance fraud has become a major trouble in the US for a long time now. The insurance and banking ...
The Balgopal firm- is it a help or a fraud?
Published by Dinesh on April 24th 2012 | Business is one of the latest online shopping sites. They offer a variety of mother and baby car...
Avoid auto fraud and auto loan default by following some simple steps
Published by Safinajones on December 22nd 2011 | Business
Auto fraud and auto loan default both can be avoided by just being a little careful. In case of auto...
Don’t fall victim to identity fraud with Home Shred UK’s super and safe shredding service
Published by Mary Porter on July 14th 2012 | Business
Identity Theft is one of the fastest growing crimes in the UK; this crime has worryingly risen by 20...
Dynamic Wealth Management Headlines: an ounce of fraud prevention is worth a pound of cure
Published by Dynamic Wealth Management on April 17th 2012 | Business
Financial fraud is alive and well, and claiming more victims than ever before. Scams are getting mor...
Avoiding credit card fraud whilst on holiday
Published by Sean Burke on April 19th 2012 | Business
Want to avoid credit card fraud whilst on holiday? Bear in mind essential tips like checking your bi...