ABSTRACT
The investment in new fraud prevention technology should reflect the risk management policies of the issuer. Once a criminal has bypassed the safety checks and fraud prevention controls the fraud investigation team take over the responsibility to fully research the matter and bring the criminals to justice. Risk policies should also clearly define the procedures and controls in place to minimize exposure in each of the business functional areas such as new account application processing, card production and delivery, customer service, Internet purchases, and so on. Card associations such as Visa and MasterCard also keep centralized databases and maintain interfaces with fraud prevention systems with the bankcard issuer. Most counterfeit cards are the result of card skimming in which the genuine data on the magnetic stripe of a card is illegally copied onto another. Police and law enforcement agencies in most developed markets have units dedicated to financial fraud and especially bankcard fraud.
