credit card fraud

(noun)

Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account.

Related Terms

  • Black Friday

Examples of credit card fraud in the following topics:

  • Consumer Misbehavior

    • Consumer misbehavior is specifically related to retail and other markets, and includes things from cutting in line to fights between customers to credit card fraud.
    • Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction.
    • Estimates put the cost of credit card fraud to billions of dollars .
    • Many also use electronic tracking devices on products and closed-circuit television to fight shoplifting and fraud.
    • Credit card fraud is a form of consumer misbehavior that can cost billions of dollars a year.
  • Avoiding Potential Fraud

    • Internet fraud can occur in chat rooms, email, message boards, or on websites.
    • In a call tag scam, criminals use stolen credit card and tracking information to purchase goods online for shipment to the legitimate cardholder.
    • Another tactic users employ to avoid fraud is erasing hard drives when throwing away old computers.
    • Erasing the hard drive can reduce the possibility of identity theft and other forms of fraud.
    • Clearing private data such as individual browsing history can also reduce potential fraud.
  • Loyalty Marketing

    • To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
    • CLOs connect offers or discounts directly to a consumer's credit card or debit card, which can then be redeemed at the point of sale.
    • To receive and use CLOs, consumers must willingly opt in to a CLO program and provide their credit/debit card information.
    • After consumers make a purchase at the designated retail location, the savings appeared are credited directly to their bank, credit card or PayPal account.
    • Moloney shows that nearly half of all credit card users in the US utilize a points-based rewards program.
  • Sustainable Competitive Advantage

    • A loyalty program is like a "Target card. " Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer's needs and wants outside of Target.
    • Target tracks all sales done on their cards.
    • So, Target can track customers who use their card at other retailers and compete by providing that merchandise as well.
  • Naming Brands

    • Security chips added to Visa credit card provide extra security measures to protect against identity theft.
  • Services as Solutions

    • For example, Visa has embedded security chips, such as the one displayed in this picture, into their Visa credit cards.
    • This chip will ensure the card cannot be duplicated and provides extra security measures to consumers who use the credit cards and reduces the threat of identity theft.
  • Direct Marketing

    • Toll-free 1-800 numbers, loyalty marketing programs, magazine subscription cards, mail order catalogues, and credit card rewards programs laid the foundation for direct marketing's success.
  • Cash Flow

    • Another example is a gas station that gives discounts on gas prices to costumers who don't pay with credit cards.
  • The Dynamic Environment

    • Examples of collaborators include shipping providers, credit card processors, or online shopping cart providers.
    • Technology includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards.
  • Online Sales Promotion

    • For software free trials, users often have to give payment or credit card information and other demographics before the download is allowed and the software is functional.
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