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A Descriptive Study of Fraud Pattern

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A Descriptive Study of Credit Card Fraud Pattern

The purpose of the study researched was to determine a pattern in fraudulent credit card transactions so that financial institutions were able to learn how to detect such transactions. This consequently results in the financial institution being able to improve their ability to develop elaborate systems in the prevention of any future fraudulent transactions. The research questions that arise in this study are the questions of the different types of fraud used, what are the patterns of these types of frauds and the findings in comparing different countries, so that the financial institutions can move forward in the appropriate way to stop these types of frauds from happening (“A Descriptive Study of Credit Card Fraud Pattern,” 2013).

The hypothesis of this research study is knowing what patterns in credit card fraud can help financial institutions implement proper measures and systems that will reduce the amount of credit card fraud. If financial institutions can detect where the biggest numbers of fraud are evolving, for example: counterfeit; mail order/telephone; stolen cards; mail intercept; fraudulent applications; and miscellaneous, financial institutions will be better able to put strategies into place that will help reduce the instances of fraud in the future (“A Descriptive Study of Credit Card Fraud Pattern,” 2013).

The main finding of the research article suggests that the highest percentage of fraud involved counterfeit cards, stolen cards, and mail/telephone orders. The highest of these three being counterfeit cards and Hong Kong being the country with the highest percentage of fraud, with the U.S. being second. While Hong Kong had the highest fraud in counterfeit cards, the U.S. had the highest fraud in mail/telephone orders. Out of the 42 countries researched, Hong Kong had the only

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