Credit card fraud, the criminal use of a credit card, costs businesses millions of dollars each year, so actively working on credit card fraud prevention is well worth it.
When we think of credit card fraud, we tend to think of criminals stealing people's credit cards and then using them to steal merchandise. Some credit card fraud still happens this way (6% of all credit card fraud losses in 2010, according to the RCMP), but the majority of credit card fraud results from counterfeit card use (37% of all dollar losses). Organized criminals, say the RCMP, have acquired the technology that allows them to "skim" the data contained on magnetic stripes, manufacture phony cards, and overcome such protective features as holograms.
Worse, no-card fraud (credit card fraud committed without the actual use of a credit card) is growing exponentially; in Canada in 2010, fraudulent e-commerce, telephone and mail purchases accounted for 48% of credit card fraud losses. It's my belief that this figure will grow even more because of the proliferation of phishing scams (fraudulent e-mails and websites designed to deceive recipients into revealing credit card numbers and other personal and financial information).
However, with proper credit card fraud prevention policies in place, businesses can do a great deal to reduce their credit card fraud losses. For more on credit card fraud prevention, see Steps to Prevent Credit Card Fraud.
This Credit Card Fraud page by the RCMP explains the steps individuals should take to report credit card fraud and presents strategies for making sure your credit card information isn't stolen.
