ways to prevents Atm cardsholder informations from being hacked and stolen.
An
ATM card is any payment card issued by a financial institution that enables a
customer to access an automated teller machine (ATM) in order to perform
transactions such as deposits, cash withdrawals, obtaining account information.
Sometimes this card may also be used as a debit card, but not all ATM cards
have this capability. ATM cards are known by a variety of names such as bank
card , MAC (money access card), client card, key card or cash card , among
others. Most payment cards, such as debit and credit cards can also function as
ATM cards, although ATM-only cards are also available.
Nowadays
Atm card is virtually accepted as a means of payments in different places like Schools, Cafeteria, Pharmacy, Supermarkets, which really Aids cashless
policy and also helps in improving online transactions and it makes people familiarize
themselves with computers, not only that it makes transactions possible fast
and easy, at one convenient time.
The
types of frauds
There
are many kinds of credit card fraud, and they change so frequently as new
technologies enable cybercrimes that it’s nearly impossible to list them all.
But
there are two main categories:
Card-not-Present
(CNP) frauds:
This,
the most common kind of fraud, occurs when the cardholder’s information is
stolen and used illegally without the physical presence of the card. This kind
of fraud usually occurs online, and may be the result of so-called “ phishing”
emails sent by fraudsters impersonating credible institutions to steal personal
or financial information via a contaminated link.
card-present-frauds:
This is less common today, but it’s still worth watching out for. It often
takes the form of “ skimming” – when a dishonest seller swipes a consumer’s
credit card into a device that stores the information. Once that data is used
to make a purchase, the consumer’s account is charged.
The
mechanism of a credit card transaction
Credit
card fraud is facilitated, in part, because credit card transactions are a
simple, two-step process: authorisation and settlement.
At
the beginning, those involved in the transaction (customer, card issuer,
merchant and merchant’s bank) send and receive information to authorise or
reject a given purchase. If the purchase is authorised, it is settled by an
exchange of money, which usually takes place several days after the
authorisation.
Once
a purchase had been authorised, there is no going back. That means that all
fraud detection measures must be done during in the first step of a
transaction.
Here’s
how it works (in a dramatically simplified fashion).
Once
companies such as Visa or Mastercard have licensed their brands to a card
issuer to the merchant’s bank, they
fix the terms of the transaction agreement.
Then,
the card issuer physically delivers the credit card to the consumer. To make a
purchase with it, the cardholder gives his card to the vendor (or, online,
manually enters the card information), who forwards data on the consumer and
the desired purchase to the merchant’s bank.
The
bank, in turn, routes the required information to the card issuer for analysis
and approval or rejection. The card issuer’s final decision is sent back to
both the merchant’s bank and the vendor.
Rejection
may be issued only in two situations: if the balance on the cardholder’s
account is insufficient or if, based on the data provided by the merchant’s
bank, there is suspicion of fraud.
Incorrect
suspicions of fraud is inconvenient for the consumer, whose purchase has been
denied and whose card may summarily be blocked by the card issuer, and poses a reputational damage.
Notes while holding your card make sure you cover the three digits number behind your card, before purchasing anything online make sure the site is trusted.
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