Credit Card Frauds in Banking

This paper explores the credit card fraud and methods of it, and gives information about what to do in case of encountering credit card fraud by chargeback topic. In light of this information, the purpose of this paper is to enlighten credit card users and create awareness of using a credit card. Some relevant and required data from some authorized organizations and public enterprises are obtained, like: Association of Certified Fraud Examiners “ACFE”, The Union of Credit Cards, Interbank Card Canter, Department of Anti-Smuggling and Organized Crime and some special banks. By this data, it is given theoretical knowledge dealing with fraud types and occurrence rates. Since the economic necessities of people increase, there are more requirements to new meaning and tools of payment and nowadays credit cards are the most important instrument of payment meeting this requirement. Increasing of banks’ kind of services with developing technology not only brings benefits to people but also brings some risks. There are some frauds that try to earn illegal money by using developing technology. But the technology not only benefits fraud but also benefits to people who examine the fraud and it is very easy to find out them with a careful examination. In this paper it is studied on the types of credit card fraud such as, application fraud, lost – stolen cards, account takeover, fake and counterfeit cards. Also it includes parts of gaining information by taking reports and data from different and safe official sources. Besides that, paper investigated about how often the occurrence of these methods. Nowadays, due to the fact that frequency of using credit cards and online shopping is increased substantially, the cost of frauds accrues. So, banks are more attentive and more careful as improving their struggle methods. Banks’ auditing on time, the care of customer and contracted merchant will be useful considerably while struggling against fraud. Keywords: Banking, Credit card, Fraud, Chargeback