Case Study- (Layout and Creation)
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Running Head: Case Study: (Layout and Creation)
UNIVERSITY OF THE POTOMAC
DACS640:7: Online Data Integration, Warehousing, Provenance, and Analysis
Dr. Daryl R. Brydie
Megha Makol
Case Study: (Layout and Creation)
Introduction
With more people using credit cards in their daily lives, credit card companies must take
extra precautions to ensure the security and safety of their customers. The global credit card
market revenue reached an impressive $152 billion in 2022, growing at a 9.1% annual rate,
highlighting the massive scale of credit card transactions worldwide. The number of credit card
holders worldwide has steadily increased to 1.25 billion in 2023, representing a 2.79% annual
growth rate from 1.1 billion in 2018. (Caporal, 2019). Credit card holders in the United States
number 166 million, while credit card holders in Canada number 36 million. Through the first
half of 2023, 559,000 identity theft cases were reported. With 440,666 reports, credit card fraud
was the most common type of identity theft in 2022. In the first half of 2023, 219,713 credit card
fraud reports were filed. The fastest-growing type of identity theft is synthetic fraud. There are
two types of credit card fraud. The first is when an identity thief opens a credit card account in a
customer's name; reports of this fraudulent behavior increased 48% from 2019 to 2020. The
second type is when an identity thief uses an existing account a customer had created, usually by
stealing credit card information; reports of this fraud increased 9% from 2019 to 2020. These
statistics piqued our interest because the numbers have been steadily increasing over the years,
motivating us to solve the problem analytically by employing various machine-learning methods
to detect.
Literature Review: Scott, R. H., (2009) advises financial institutions that in today's world, the probability of
problems arising from having and using credit cards is high and growing at an exponential rate.
A list of credit card records and contact information is always a good idea. Unless and until the
Case Study: (Layout and Creation)
actual problem with the credit card is reported to the credit card company, the credit card holder
may be held liable for all purchases.
Behavioral Review:
Theories of behavior According to Hansen (2009), economic, business, and elite crime
can be distinguished. Most of such crimes are committed by participants working in reputable
financial institutions. Employees commit occupational or greatest crime for their own benefit
rather than for the benefit of the company. According to Hansen (2009), people commit crimes
because they lack self-control. Some of the key motivational and psychological factors that lead
to financial crime are described by Duffield and Grabsky (2001). They stated that three factors
can explain fraud:
1) An increase in the number of motivated criminals,
2) the availability of appropriate funds, and 3) the lack of security
Phase: Business Awareness
Credit card fraud occurs when a third party takes your credit card information to make purchases
or steal funds. In the past, this usually happened when someone stole a physical credit card from
you. However, thanks to today's online purchases and web databases, your card information
alone can lead to identity theft. As previously stated, credit card fraud is increasing dramatically
every year, and many people face the problem of having their credit cards breached by those
fraudulent people, affecting their daily lives, as credit card payments are like taking out a loan. If
the problem is not solved, many people will have large amounts of loans that they cannot repay,
causing them to have a difficult life and not be able to afford necessary products; in the long run,
not being able to repay the amount may result in them going to jail. Essentially, the proposed
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Case Study: (Layout and Creation)
problem is the detection of fraudulent credit card transactions made by fraudsters to stop those
breaches and prevent future breaches. Application fraud:
It is frequently associated with identity theft. It occurs when someone else
applies for credit or a new credit card in your name. They will typically steal supporting
documents, which will then be used to substantiate their fraudulent application. Banks have a
variety of safeguards in place to prevent this type of fraud from occurring. The most important is
that only original documentation is required. They will also frequently call employers to confirm
their identity. Unfortunately, criminals frequently falsify documents and provide phony phone
numbers for places of employment. Unfortunately, there are always ways to get around certain
safeguards.
Account Takeover:
For credit card fraudsters, obtaining credit card details is akin to discovering
the key to a gold mine. Fraudsters can contact the credit card company as the user and report the
missing card, change the required card information, and order a second credit card to their
preferred address. All future statements will be sent to the new address. The genuine credit card
user will be completely unaware of the fraud taking place during this entire procedure. So, credit
Case Study: (Layout and Creation)
card users must keep an eye on the date of their credit card statements every month; if they do
not receive the statements on the regular date, they must contact the company by any means and
inquire whether any of their information has been changed without their direct consent.
Fraudsters can also steal new credit cards while they are still in transit between the bank and the
legitimate credit card user. So, whenever credit card users receive a notification or anticipate an
important delivery, seize it as soon as possible because the longer the user waits, the more likely
the fraudster will take advantage and intercept it.
Credit Card-Skimming:
The crime of obtaining private information about someone else's credit
card used in an otherwise normal transaction is known as skimming. The thief can obtain a
victim's card number through simple means such as photocopying receipts or through more
sophisticated means such as using a small electronic device (skimmer) to swipe and store
hundreds of victims' card numbers. Restaurants or bars are common places for skimming because
the skimmer has the victim's payment card out of sight. A small keypad may also be used by the
thief to inconspicuously transcribe the 3- or 4-digit Card Security Code, which is not present on
the magnetic strip. Another area where skimming is common is call centers. Skimming can also
happen at merchants like gas stations when a third-party card-reading device is installed outside
or inside a fuel dispenser or other card-swiping terminal. With each card swipe, a thief can
capture a customer's card information, including their PIN.
Cards that have been lost or stolen:
Your card will be taken from your possession, either
through theft or because you have misplaced it. Criminals who gain access to it will use it to
make payments. This is difficult to accomplish using machines because they will require a pin
number. However, it is simple to make online purchases using a lost or stolen card. As a result, it
is critical that you cancel your cards as soon as you realize they are missing. (Corp)
Case Study: (Layout and Creation)
Reference:
1.
Hansen, L.L. (2009) 'Corporate financial crime: Social diagnosis and treatment, Journal of Financial Crime, 16(1), pp. 28-40.
2.
Caporal, J. (2019, November 7). Identity Theft and Credit Card Fraud Statistics for 2023. The Motley Fool; The Ascent by The Motley Fool. https://www.fool.com/the-ascent/research/identity-theft-credit-card-fraud-statistics/
#:~:text=559%2C000%20instances%20of%20identity%20theft,growing%20form%20of
%20identity%20theft.
3.
Ravage, Kalli. “The Growth of the Credit Card Industry in 2023.” Credit Card Processing and Merchant Account
, 31 July 2023, www.clearlypayments.com/blog/growth-of-credit-
cardindustryin2023/#:~:text=billion%20in%202018.,The%20number%20of%20credit
%20card%20holders%20globally%20has%20steadily%20grown,from%201.1%20billion
%20in%202018.
4.
Corp, Synovus Financial. What Are Common Types of Credit Card Fraud?
30 Nov. 2023,
www.synovus.com/personal/resource-center/financial-safety-and-security/types-of-credit-
card-fraud.
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