<nettime> Credit Card Fraud Higher. Credit Card Fraud Lower.

["nettime's_roving_reporter" <nettime@bbs.thing.net>]

"R. A. Hettinga" <rah@shipwright.com>
     Card Fraud Higher (fwd)
     Credit Card Fraud Lower

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     [2x orig to Digital Bearer Settlement List <dbs@philodox.com>,
      <dcsb@ai.mit.edu>]
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Date: Wed, 22 Mar 2000 16:03:49 -0500
From: "R. A. Hettinga" <rah@shipwright.com>
Subject: Card Fraud Higher


--- begin forwarded text


From: Somebody
To: "'rah@shipwright.com'" <rah@shipwright.com>
Subject: Card Fraud Higher
Date: Wed, 22 Mar 2000 11:23:51 -0800

Mar 22 2000 : Despite credit card firms claiming
                   figures for online fraud to be no higher than those
                   for real-world fraud, experts estimate 20 to 40 per
                   cent of online purchases to be fraudulent. Only
                   last week, MSNBC reported Visa to have quietly
                   notified selected merchants in December 1999
                   that over 485,000 credit card numbers had been
                   stolen from a major Web merchant in January
                   1999. The numbers were stored on the Web site
                   of a US government agency, before being
                   discovered in March 1999. 

                   Canadian security analyst Robert Kubbernus,
                   believes that only 20 per cent of hacks are ever
                   reported, with the remaining 80 per cent
                   concealed to protect shareholders' interests.
                   MasterCard is countering the rise in fraud by
                   imposing a fine on merchants whose chargebacks
                   are one per cent or higher of total sales, or 2.5 per
                   cent or higher of total sales volume for more than
                   two consecutive months. Ironically, e-tailers now
                   risk being squeezed between consumer concerns
                   over security or actual credit card fraud.

                   Total verifiable losses from breaches in 1999
                   exceeded USD 265 million, or over twice the figure
                   for 1998, according to annual figures from the FBI
                   and the Computer Security Institute. Over 90 per
                   cent of respondents had incurred a security
                   breach, but only 42 per cent knew the dollar cost
                   of such attacks, with the total of USD 265 million
                   being twice the average for the previous three
                   years. Financial fraud and information theft
                   caused the most serious losses, at USD 56
                   million and USD 68 million, respectively.

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     <...sig + DCSB list un/sub info deleted, see bottom of digest>

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Date: Wed, 22 Mar 2000 16:04:26 -0500
From: "R. A. Hettinga" <rah@shipwright.com>
Subject: Credit Card Fraud Lower

--- begin forwarded text


From: Somebody
To: "'rah@shipwright.com'" <rah@shipwright.com>
Subject: Credit Card Fraud Lower
Date: Wed, 22 Mar 2000 11:32:05 -0800

Visa Says Fraud Levels Hit All-Time Low
                   Visa

                   Feb 28 2000 : Visa International announced last
                   week that fees for lost or stolen cards will now be
                   waived in view of card fraud losses reaching an
                   all-time low during 1999. The move was prompted
                   by fraud losses dropping to 6 cents for every USD
                   100 in 1999, compared to 7 cents per USD 100 in
                   1998, and 18 cents per USD 100 in 1992. Visa
                   customers who did not report lost or stolen cards
                   within two days were previously charged USD 50
                   in liability fees, but from April 2000, this charge
                   will no longer be applicable. [...]

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-----------------
R. A. Hettinga <mailto: rah@ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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