Evaluating the modus operandi of perpetrators of credit card fraud

Abstract

Today utilization of Credit Card even in non-industrial nations has become a typical situation. Individuals use it to shop, cover tabs and for online exchanges. In any case, with increment in number of Credit Card clients, the instances of extortion in Credit Card have likewise been on ascent. Master-card related fakes cause all around the world a deficiency of billions of Rands. Visa misrepresentation should be possible from various perspectives. By lost or taken cards, by delivering phony or fake cards, by cloning the first site, by deleting or changing the attractive strip present at the card which contains the client's data, by phishing, by skimming or by taking information from a shipper's side. The growth in electronic transactions has resulted in a greater demand for fast and accurate user identification and authentication. Conventional method of identification based on possession of pin and password are not all together reliable. Higher acceptability and convenience of credit card for purchases has not only given personal comfort to customers but also attracted a large number of attackers. This study followed qualitative research and the research design that was adopted in this study is of an empirical nature. The researcher decided on this research design, because he wanted to establish the reason for the lack of knowledge or the stumbling blocks concerning the investigation and prosecution of credit card fraud. The ideal population of this study consisted of three bank managers from Standard bank and First National Bank and Capitec bank, all of them were females in terms of gender, and three of them had between 22 and 36 years of experience in the banking sector. From the SAPS sampling, 22 participants in total were interviewed, comprised of Constables, Sergeants, Warrant officers, and Captains. Of these, 6 were females and 16 males. Their experiences ranged between 10 years to 27 years. In terms of members of the community, six members of community police forums (CPF) were interviewed, four were males and two females. They have been staying in Vanderbijlpark between twenty and thirty five years, while they have been involved in CPF for more than two years. Non-probability sampling was adopted, whereby a purposive sample was selected as the members of the population for focus group discussions (FGDs) and key informant interviews (KIIs) were chosen haphazardly. The study recommends that in order to decrease these frauds there is a need of a powerful fraud detection system which not only detects the fraud but also detects it before it takes place and in an accurate manner. The study also recommends that there is a need to also develop systems learns from the past committed frauds and makes them capable of adapting to future new methods of frauds. This study recommends that the CCTV cameras should be installed in the ATM, where cases of credit card are taking place. In addition, the police be visible in the areas which are most prevalent to credit card fraud. This study recommends that the SAPS members should be taken for regularly training in order for them to be able to properly investigate the cases of credit card fraud.