Credit card fraud is a type of financial crime in which a criminal steals someone’s credit card or credit card information and uses it to make unauthorized transactions. These transactions, withdrawals, and purchases are charged to the card-holder, which often leaves them in a financially debilitating situation.
Financial fraud is increasing in scale with time, and the digital revolution has given fraudsters more avenues than ever before to target individuals. A serious financial crime, like fraud, has far-reaching consequences for the financial industry.
Data mining has played a central role in the detection of credit card fraud through online transactions. The detection of credit card fraud is, essentially, a data mining issue. Therefore, it can be solved using Machine Learning implemented in technologies’ anti-fraud and anti-money laundering software.
The reason why ML is so successful in managing financial fraud is because it is an adaptive technology that addresses the main challenges of fraud detection.
The profiles of both normal and fraudulent behaviors are subject to constant change, and credit card fraud data sets are usually very skewed.
The sampling approach to the data set, selection of variables used, and the detection techniques used all play a major role in determining just how fraud detection programs will perform.
If you haven’t been subjected to credit card fraud yet, you are one of the lucky few. And, of course, we’re pretty sure you want to keep this lucky streak going and continue to stay safe from fraudsters.
To help you achieve this, knowing all of the precautions you can take to keep your account clean and your identity protected is a must. Protecting your private information online is the most important factor. Check your browser’s lock icon on the website bar to ensure you only use secure websites. Avoid sketchy emails to prevent falling prey to a phishing attack. Keep your anti-virus and spyware software up-to-date
Do your research on how to make the best of these integral tools. Follow password best practices at all times.
A secure way to protect your payments, both online and in-person, is through the use of mobile wallets. Options such as Apple Pay and Google Pay offer a way to make secure payments from your smartphone or watch whether you’re in-store or at home. However, in recent times, these channels have also been used for money laundering and fraudulent activities.
Here are the steps to follow if you suspect you have been subjected to a credit card fraud attack:
In the end, the most important factor when it comes to avoiding credit card fraud is your own vigilance and monitoring of your account. Checking your credit report and statements routinely will set you up for success and help you catch the problem in time in the event it occurs.
Unfortunately, history tells us that fraudsters will continue to find ways to scam people out of their hard-earned money. Yet, by being prepared and properly reviewing your transactions, a potential long-term nightmare may have a short-term solution.