http://latimesblogs.latimes.com/lanow/2011/01/gas-station-credit-card-fraud.html
Summary: In Sierra Madre with just over 11000 people, there was 282 credit frauds related to one gas station.With over $82000 losses, the investigation may extend to another city, supposedly in another gas station in Valero. The man that the detectives are investigating, still at large, had allegedly used a duplicate card at a bank. A picture has been released of the man who used a fake card at a ATM. The culprit(s), being very sneaky, used the cards after Christmas, where people paid the least attention to their bills. Anyone who has a recollection or has seen the man is to call the Sierra Madre Police Department at (626)355-1414.
Connections: This article is connected to chapter 14 since chapter 14 is partially about banking for a business and my when a credit fraud occurs, it affects the victim and the business. When someone uses a copy credit card, the business will surely lose their products which will result in a loss of profits. They send their bill to the victim, but since he was a victim of a credit fraud, he doesn't have to pay some of it or all of it. The business then will lose their products and have no money in return. Evidently, when a credit fraud occurs, money is lost except for the culprit, who gets away and uses the clone card in another station. Also, when a credit card fraud occurs, most businesses are not aware of the fact that it is happening. They have to send their slips to the bank, in which the bank has to resend to the victim, which is all part of how a credit card transaction occurs; of course,this is part of chapter 14.
Reflection: Credit card frauds happen all over the world. Reading the news daily, I have read numerous articles about credit card frauds and how people lost thousands of dollars which, in fact, kind of scares me. I hate carrying cash on me, so when my parents allow, I would rather carry a credit card. Now, I can imagine me being a victim of a credit card fraud because someone stole my identity and created a copy of the card. Being millions in debt, my life would be ruined. I just wish that no one would steal my identity and benefit from it. All I hope for is that the person who did copied cards will be caught and fined, possibly even jailed.
I never knew that businesses suffered from credit-card frauds until now. I had always thought that the person who had lost it would have to take full responsibility. It seems to me as if that the real victim from credit-card frauds may be the business because they are the ones that are losing everything while the victim who had lost their card may be reimbursed. This article has made me think about how careful businesses must be when dealing with credit-cards but more importantly how careful I have to be so that I won't be a victim and have to go through all of the possible consequences. Thank you Eddie for your post which will make me use credit-cards in an extremely safe manner once I get one. Keep up the good work.
ReplyDeleteA business which suffered 282 credit card frauds would probably stop taking credit cards altogether. I now understand why some businesses choose to accept only cash. Taking the chance of making less money when reducing the possibility of a huge loss is a smart move in some cases. I can also see how being a victim of credit card fraud can be a scary thing. Being millions of dollars in debt would definitely lead to many problems. A long jump down a building or pulling the trigger might look like good choice to a person in that position. This post really made me think. Keep up the good work Edie! I mean Eddie!
ReplyDeleteCredit card fraud scares me a lot because it's extremely hard to prevent from happening. Credit card companies try to update their cards for more safety features, but it doesn't seem like it really prevents fraud from happening. For the time being, we can only protect ourselves by not using credit cards altogether. However, most people would not choose that option because of the convienience credit cards provide. I also think that smaller businesses would suffer most from credit card fraud because of their lower incomes. Large companies would have more profit to cover for the losses from credit card fraud. Although, a loss is a loss. Companies big and small suffer from credit card fraud, and we as consumers also lose money from it as well.
ReplyDeleteCredit card frauds scares me a lot. Though it is a time of plastic money and electrical gadgets that provide easy life but like other gadgets and mechanical things have minus points, credit cards have that too. It’s a big loss for consumers, bankers, and business people and to the victim of course. Though preventive actions are taken against it but still the fraud is increasing leaps and bound. Thieves never think of punishments but yes if the punishment is severe than surely the outcome will be better so I think, in spite of companies who are not accepting credit cards, the sever punishment could be a better solution at least for minor thefts. There are many other precautions can be taken by consumers also but I don’t think we can stop stealing habits but prevention is better than cure! though the sufferer knows how heinous the crime is, and how he suffers mentally and physically when he looses his hard earned money. Good job Eddie!.
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