-Cybercriminals

• Hack into corporate computers and steal

• Engage in all forms of computer fraud

• Chargebacks are disputed transactions

• Loss of customer trust has more impact than fraud

• To reduce the potential for online credit card fraud sites:

- Use encryption technology
- Verify the address submitted online against the issuing
bank
- Request a card verification value
- Use transaction-risk scoring software

• Smart Cards

- Contain a memory chip
- Are updated with encrypted data every time the card
is used
- Used widely in Europe
- Not widely used in the U.S.