Phishing

Credit card fraud detection measures are growing in response to demands by consumers for better online security for ecommerce transactions. Technology is largely responsive to market demands. With the advent of online ecommerce, anticipating the full spectrum of online scams conjured up by devious minds is a challenge. After the fact analysis allows system designers to identify the original source of the problem and to build security infrastructure to combat future occurrences. With the range of attacks that have occurred in recent years, companies that design credit card scam detection systems now have more available data to work with.

One common approach to detect credit card fraud is to request the end user enter a three or four digit number provided on the back of the credit card. This is designed as a shield against individuals who have managed to procure the credit card name, number and expiry date. Failure to enter this number, which is contained on the back of the card, prevents the transaction from proceeding. Whilst this measure may not catch the individual responsible for procuring the details, it does act as a safeguard to prevent unauthorized transactions.

Many banks and online merchants are now employing the use of sophisticated algorithms and neural networks to detect credit card fraud. There are several separate and integrated measures built into this. IP address checks are employed to ascertain that the transacting address matches the IP address of the issuing country. Proxy detection procedures are also implemented. Proxy addresses are often used by perpetrators of fraud to avoid the IP address check. Security procedures focus on isolating this occurrence. BIN validation procedures also focus on determining whether the billing address matches the country of the issuing bank. The sophistication of these approaches are continually evolving in response to new methods and procedures to stay on top of credit card fraud detection.

End users are also encouraged to use caution when using credit cards. Old cards should be destroyed as soon as a new card is issued. When placing transactions online, the browser should be immediately closed after the transaction has been completed. A firewall, virus software and regular spyware scans should be conducted to remove any traces of old credit card details and prevent unwanted files from residing on the host computer. With the advancements being made by security companies, credit card fraud detection measures are making the internet a safer place to transact. Hopefully in the years to come credit card scam detection will continue to evolve to stamp out this unwanted behavior.

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