Credit Card Fraud
1. Provide a definition of your topic.
Credit card fraud is the act of making a purchase using someone else's credit card information. There are many different types of credit card frauds such as:
· Personal Credit Card Fraud – charging items to the credit card and then later claiming that the charges were made by someone else or charging items to an expired or cancelled credit card. When items are charged to an expired or cancelled credit card, the credit card company is not required to pay the charge, and the consumer often can't be tracked down to pay for the item later.
· Business Credit Card Fraud – is when employees who have been approved as designated signers on the business card. Employees commit fraud by paying for their own personal items with the company credit card and having the company pay for it.
· Stolen Credit Card Fraud – is when one person steals another person's credit card and makes charges under that person's name. Thieves can steal the actual card, steal the credit card number to use in online transactions, or intercept the credit card in the mail before the owner ever receives it.
· Counterfeit Credit Card Fraud – occurs when someone creates a counterfeit credit card with fake numbers and a fake name and then charges items to the fake card. Because this card isn't linked to any actual account, the credit card company is not responsible for the fraudulent charge and the company who received the charge has no one to pay for the charge.
- How are databases involved in this topic?
Credit card companies store the personal details of their clients on databases. When credit card fraud is committed, this information is violated as it is derived from the database and then used for unethical purposes.
- Describe the type of data stored about individuals in relation to this topic.
-name
-age
-address
-date of birth
-phone number
-spouse/family members
-credit rating
-credit history i.e. repayments
-previous transactions
-number of accounts
-how much money is stored in those accounts
- Describe some of the ways in which this data can be misused.
- Manipulating financial software - making payments to a fictitious person.
- Using illegally obtained credit card numbers to make payments for goods.
- Manipulation of stored personal data - removing a criminal record.
- “Data sabotage” - hacking into a rival company's data and deleting or altering it.
- developing viruses
- Blackmailing other people by obtaining their personal data
- Using computer time to carry out unauthorized work - using a company's computer to do a friend's payroll
- A person who breaches the security protocol of the database has committed an ethical infraction.
- What are the ethical responsibilities of those maintaining the database?
The ethical responsibilities of those in charge of maintaining databases are to make sure the above listed misuses are not carried out. There should be a consideration of the intrinsic ethical duty placed on database security professionals to secure a database system. Those in charge should also make an effort to inform their customers that no credit card details will be asked through phone or internet.
- What are the legal responsibilities of those maintaining the database?
Under the Privacy Act requirements banks have to maintain computer and network security and other security measures such as identifications codes and passwords to make sure only authorized personnel can access it. Banks are bound by law to ensure that personal details are kept confidential. They are liable for any exploitation of these personal details and can be sued. The compensation for the people affected by the breach is the responsibility of the credit card company.
