Computer and Society Dr. Ghazi Al-Naymat Credit

 

 

Computer and Society

Dr. Ghazi Al-Naymat

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

 

 

Credit Card Fraud

 

 

 

Prepared by: Aseel Masoud 20130068

 

 

 

 

 

 

Table of Contents

 

Table of
Contents…………………………………………………………………………………………………. 2

1. Introduction……………………………………………………………………………………………………… 3

2. Problem definition…………………………………………………………………………………………….. 3

3. Elements of credit card fraud  ……………………………………………………………………………. 3

4.How does credit card fraud happens……………………………………………………………………. 3

4.1 The
restaurant ruse……………………………………………………………………………………… 4

4.2 Dupet
and distracted………………………………………………………………………………….. 4

4.3 The gass lass……………………………………………………………………………………………… 4

4.4 The
malware masters………………………………………………………………………………….. 4

4.5 Data
at a discount………………………………………………………………………………………. 4………..

5. Credit card fraud detection………………………………………………………………………………… 5

6. Ways to avoid credit card fraud………………………………………………………………………….. 5

7. Conclusion……………………………………………………………………………………………………….. 6

8. References……………………………………………………………………………………………………….. 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Introduction

Nowadays , Your credit card
information is pretty much always at risk for theft. and this document will
present this topic from different angles.

 

2.Problem
Statement:

The Credit
Card Fraud Problem includes modeling past credit card transactions with the
knowledge of the ones that turned out to be fraud. and detecting this problem
is used to identify whether a new transaction is fraudulent or not. Also , Let
me talk about the cases of fraud and ways to keep our credit card safe.

 

3.Elements of Credit
Card Fraud

The term credit card fraud is
usually used to specify the use of a credit card, debit card, or any
similar form of credit . This  includes
identity theft, identity assumption, and fraud sprees. In law, certain elements
are required for a financial or identity theft crime to be classified as a form
of credit card fraud. These include:

§  Credit Card Theft: the taking of a
credit card, or credit card number, from another person, without the
cardholder’s agreement, with the intent of using or selling it.

§  Credit Card Forgery: the
buying of something of value using a credit card, by someone other than the
cardholder, with the intent of defrauding the card’s issuer.

§  Credit Card Fraud: the taking
of a credit card, or credit card number, from another person, with the intent
to use, sell, or transfer it to another person, or using the credit card or
card number to purchase something of value, with the intent to defraud.

 

4.
how does credit card fraud happens ?

Thieves
need only few time to steal your credit card data.

4.1 The restaurant game plan

 A waitress hurry away your credit
card and swipes it through the restaurant’s credit card terminal, which is out
of vision. She then pulls out a skimmer, a device
about the size of an ice cube, and swipes your card through it.

Waitress returns your card with a smile.
The waitress may also moonlight as a bartender or a retail sales clerk — any
place where the waiter  can take your
credit card out of sight.

4.2 Duped and distracted

Let me talk about short story that will
make you understand this technique :

Sara ,  ahmad and Bud walk into a toy store. Sara and ahmad
roam the aisles, while Bud waits in line to check out. When Bud is at the
register, ahmad comes running up to the clerk, shouting that his wife has fell
down. As Sara and ahmad distract the sales clerk, Bud switches the credit
card reader at the register with a modified one of his own. The sales
clerk accidentally collects credit card data on the modified reader. Later, the
trio returns, takes back the modified reader and restores the original card
reader.

This trio likely will hit other
retailers and restaurants. Sometimes, thieves work in pairs or alone.

4.3 The gas lass

Another case is the gas lass parks her
car at a gasoline station off the freeway. It’s late and there’s no one around
except a sleepy interstate at the register inside. The gas lass consist a
skimmer over the credit card reader at the pump. It’s a skimmer that beam a
Bluetooth signal to a laptop close by, says Noonan of the Secret Service. The
gas lass pays, then heads to a place nearby where she can set up her laptop to
retrieve the data from the compromised pump.

The gas lass installs skimmers over
ATMs, parking meters, vending machines — any place with unmanned credit card
readers.

4.4 The malware masters

Harry installs malware, a type of
software that damages or access a computer or network, into a legitimate
website with low security. The malware directly downloads in your computer when
you visit the site and allows to access your information.

4.5 Data at a discount

The person who buys the information validate
 it and then sells it to someone who
creates fake credit cards with your account information attached to it. The
card maker then sells it to other criminals who buy equipment such as furniture
and sell them to regular consumers.

 

5.
credit card fraud detection into learning machine

The
importance of Machine Learning and cannot be emphasize. The different control
parameters of the algorithm need to be twist to fit the data set. As a result,
the developed application enhance and becomes more efficient in solving the
problem.

In this
blog, we have attempted to demonstrate the modeling of a data set using a
machine learning paradigm classification, with machine learning paradigm that affect
collect a function that will separate data into categories, or classes, characterized
by a training set of data containing observations (instances) whose category
membership is known. This function is then used in identifying in which of the
categories a new observation belongs.

 

6. Ways to
Avoid Credit Card Fraud

6.1 Keep your
credit cards safe.

One of the simplest ways to avoid credit card
fraud is by keeping your credit cards safe from thieves. by hide your credit
cards in a purse or wallet close to your body.

Thieves can
take pictures of your credit card with a camera or mobile phone, so don’t leave
your credit card available any longer than need.

6.2 Don’t
sign blank credit card receipts.

Always verify the amount on your credit
card receipt before signing it. If you get a credit card receipt that has blank
spaces in it, write $0 in those spaces or draw through them before putting your
signature on the card. Otherwise, the cashier could write in an amount and send
the purchase to your credit card source.

6.3 Avoid
giving out your credit card information.

Don’t give your
credit card number or other sensitive information to anyone unless people you
trust the most . Don’t give your credit card number to anyone who calls you
requesting the number. Credit
card thieves have
been known trick on you to giving out your
credit card number.

6.4  Be
safe with your credit card online.

Don’t click on
email links from any source that looks like your bank, credit card company, or any
company who uses your personal information, even if the email looks original.
These links have scams and the scammers want to trick you into entering your
login information on their fake website. Instead, go directly to that business
webpage and login to your account.

While using
your credit card online. Enter your credit card number on secure web pages only.
To be sure a webpage is secure, look for https:// in the header of address bar
and lock in the lower right corner of your internet browser.

6.5 Review
your billing statements each month.

Illegal
uses of your credit card are the first flag of credit card fraud. If you
notice a withdrawal you didn’t make, no matter how small it is, report that
charge to your credit card company. Your credit card company
will help you to make you close your account and get a new account number to prevent
credit card fraud.

6.6 Make
strong passwords and keep them safe.

You can save your credit card number in
some places online. For example, you can save your credit card on Amazon .

Make sure that you are using strong
passwords combination of  (upper and
lower case letters characters , numbers )

 

7. Conclusion

When personal
information is stolen from your credit card, or the card itself is stolen, in
order for money to be taken from your account or using it to buy things in your
name. So , Take care about your information from thieves .

 

8. References

https://www.actionfraud.police.uk/fraud-az-store-card-fraud

https://www.thebalance.com/how-credit-card-skimming-works-960773

https://www.bankrate.com/finance/credit-cards

https://legaldictionary.net/credit-card-fraud

https://www.3pillarglobal.com/insights/credit-card-fraud-detection

http://statelaws.findlaw.com/michigan-law/michigan-credit-card-fraud-laws.html