Section 4.3

CCOOUUNNTTEERRFFEEIITT CCRREEDDIITT CCAARRDDSS

The greatest threats facing the banks today involve counterfeit credit cards. Credit card fraud has become one of the world's most lucrative crimes amounting to losses in excess of $1 Billion (US) globally and $250 Million in Canada. Five years ago counterfeit cards represented only 5.4% of reported fraud. In 1995, counterfeit credit card fraud accounted for 32.7% of all credit card fraud occurrences with an estimated loss of $34 Million. In 1996, Canadian banks reported 25,000 occurrences of card counterfeiting. Counterfeit credit card fraud has direct ties to Organized Crime and as much as 90% of all counterfeit card fraud is either committed by or can be traced back to Organized Crime.

*Statistical source: R.C.M.P. Central Bureau for Counterfeits Be alert for the customer who:

• Makes indiscriminate purchases without regard to size, color or price.

• Questions the sales clerk about the floor limit or who makes several purchases that approach but never exceed the floor limit.

• Makes an excuse for the card not swiping before you attempt to swipe it.

• Arrives or hurries a clerk near quitting time.

© Heads Up Fraud Prevention Association

• Purchases a large item and insists on taking the item with him instead of having it delivered.

• Makes purchases, leaves the store and returns to make additional purchases.

• Does not appear to be well dressed, but is purchasing expensive items.

• Pulls the credit card out of his pocket, not his wallet. • Tells you that he does not have a driver’s license, or that it is in

his car. Heads Up! Closely check the credit card

• Check the hologram. It should be three-dimensional and built into the card. Most counterfeit cards have holograms, which are stuck on to the surface.

• Check for ghost images. One way that these cards are counterfeited is by taking a legitimate card, flattening out all or part of the embossed information and then re-embossing it with new information.

• Check the bank ID number (BIN). • This is a four digit number which is printed directly above or

below the first four embossed account numbers on the card. These numbers must match. If they don't or the BIN is missing, or if it rubs off when scratched, the card may be counterfeit.

• Be aware of cards that don't swipe. The majority of counterfeit credit cards don't swipe. Check these for other security features.

• If the card swipes, ensure that the account number displayed on the terminal or printed on the receipt matches the embossed number on the card.

• Check valid and expiry dates. • Check for irregular printing or spelling errors. • Check the name on the card. (Does the name match the person

using the card; i.e.: sex, ethnic background.)

© Heads Up Fraud Prevention Association

Heads Up! If you suspect a card is counterfeit, keep possession of the card. Phone the card authorization centre and indicate your suspicions and follow instructions. Remember, an authorization code does not verify that the card is legitimate or that the person using it is authorized to do so. Customers using counterfeit credit cards will attempt to make the transaction as legitimate as possible. If you have any suspicions about the transaction, the credit card or the customer, ask for photo identification. If a customer flees, write down a detailed description of the person, vehicle used, license plate number, etc., and phone the police. Phone 9-1-1 should the fraud be in progress.

© Heads Up Fraud Prevention Association

Name

AAddddrreessss Section 4.3 Quiz 1. What are some of the security features on a credit card? 2. Give other examples of the 4Ds that could prevent this fraud

3. How is your behaviour going to change now that you have

this new information?

© Heads Up Fraud Prevention Association