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Tips to avoid online credit card fraud

As the internet trading increases, so does the threat of organized and automated fraud. No longer does the fraudster need to be present or make a phone call to commit a crime.

February 13, 2013 4:14 IST | India Infoline News Service
Technology advancement comes with its own risk. It’s important to identify those risks on time and act against it. With the increasing transition to online merchandising via the Internet, online credit card fraud has become a serious issue now days. There is no need of a gun to rob a bank any more. Now the most powerful weapon for bank robbers has become the computer and an internet connection. As the internet trading increases, so does the threat of organized and automated fraud. No longer does the fraudster need to be present or make a phone call to commit a crime.

Now the biggest question arises here - is there a solution for all this? We believe yes there are some simple steps or “Golden rules” which every bank needs to follow to reduce such kind of risks and to avoid being the victim of online credit card fraud. 


Following are examples of some unusual behaviors, which can be detected by the banks using the fraud solutions from the Attachmate Group to  avoid being the victim of online credit card fraud.    
  1. Change of credit card billing date
  2. Money transfer from inactive (dormant) account
  3. More than one credit limit increase in one month
  4. Change in deposit interest rate after renewal date
  5. More than X blocked accounts unblocked in 1 day
  6. Withdrawals short time after deposits (High volume)
  7. New bank card delivery change from “Send” to “Collect”
  8. Change in deposit amount, X days after deposit due date
  9. Address change and card re-issue within X days (5 days)
  10. Change in existing (active) deposit's bank account number
  11. Card re-issue requested within 10 days of an address change
  12. Many money transfers to the same target from many sources
  13. Change in customer's mailing status (mailing stopped or redirected)
  14. High volume transfers (single or monthly totals) to specific countries
  15. User accessed an account less than X days before fraud in account confirmed
  16. Two or more similar transactions on the same date, between the same accounts
  17. Money transfer from a GL (General Ledger) account (specific types of accounts)
  18. Money transfer from shadow account (in a case of deposit with no bank account)
  19. Many "cancelled" ATM transactions on same ATM machine in a short period of time
  20. More than 2 accounts viewed when searching for closed accounts, with zero balances
  21. Two ATM failed PINs events in geographically distant locations, in a short period of time
  22. More than 2 inactive (dormant) accounts (no transactions in 90 days) viewed in 1 day by the same user
The author is Regional Director West, The Attachmate Group India

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