Controlling credit card fraud

Abstract

Credit cards use is rapidly increasing and ultimately it has the potential to replace cash in the future. One can have access to 'cash' nearly everywhere and at any time. However, with these advantages fraud also comes along. The aim of this study is to analyse the type of fraud we can face by looking at the international scenario and eventually examine what type of fraud we have in Malta and find ways and means to improve the current situation by the recommendations suggested. The study was conducted at various levels including nearly every stakeholder in the credit card sector. These included the two major banks, Police Fraud Squad, Internet merchants and the general public. The banking sector is highly regulated and as a consequence they have to abide to certain standards issued by Credit Card Associations and other bodies regulating the credit card sector. However, research shows that there is way for improvement for other stakeholders in the sector especially with matters concerning education at the lower level. In Malta Electronic commerce is a relatively new concept, which is still evolving, and as a result it has also been established that Internet merchants should take into consideration greater emphasis with regards to security measures they apply.