Credit Card Fraud

[bongoboy]

How does it work when someone uses a stolen credit card on line, And doesn't get caught?
I ask because an elderly neighbour of ours lost his wallet with £70.00 in it.
He managed to stop the credit card, but only after £254.00 of goods had been spent on line. The police are studying CCTV footage as he thinks he lost it in Tesco.
Why can't they trace the credit card history, and see what address the goods were delivered to, and arrest the occupants. It must be as simple as that. Surely.

[Buenchico]

Physical goods might be delivered to an address outside of the UK (such as Russia or Nigeria) making them difficult to trace (especially if the purchaser used an 'accommodation address').

Electronic goods (such as software) can be downloaded. If the purchaser uses an anonymising service (such as a virtual private network, or simply connecting to the internet through an anonymous proxy server) the recipient can't be traced.

Further, there are money transfer serices whereby someone can easily gain a rechargeable debit card (posted to an accommodation address, so that the recipient can't be traced) and then top it up (either from a legitimate card, or from a stolen one) online. That rechargeable card can then be used at any ATM throughout the world to withdra cash.

Lastly, Bitcoins can be purchased, and later sold on, totally anonymously.

If I can can immediately give you four ways that credit cards can be fraudulently used online, just think of how many additional ways the thieves might well know!

[bongoboy]

Good answers. I doubt if they used an address abroad as it was lost in tesco, and used immediately on line.
So it's quite likely the ordered goods were just ordered to the thieves address. I have yet to read of anyone arrested through having goods delivered to their home using a stolen card. Some people must use this method, and if so why do you never hear of them being caught?

[SirOracle]

Don't think that most thieves are daft enough to have the goods delivered to their home address.

[beso]

One way to avoid the suspicion of an overseas delivery address is by the use of "mules". These are gullible people who take up those offers of employment that come in emails. In this case the job would involve "processing" goods for export.

The goods purchased with the card are delivered to the mule who promptly removes the signs of them being new goods to avoid any customs attention and send them overseas.

The same thing is done with money stolen from online accounts that have been compromised. The perpetrator transfers the money from the hacked account to the mule's account. The mule then converts it to a Western Union international money transfer. By the time the fraud is found the money is out of the country.

The mule is warned by police not to do it again though I am aware of cases where offenders have repeated and still got away with a warning.

The card holder does not lose their money.

[sandyRoe]

When a card is used on-line isn't there a security check to go through?

[Buenchico]

>>>When a card is used on-line isn't there a security check to go through?

Not usually, Sandy. As long as the person using the card has the information on the front of it (name, card number, start & finish dates) AND the 3-digit security code from the back, the order will normally be processed automatically.

[sandyRoe]

I was thinking of the card scanning devices the bank and building society sent me. Sometimes when I was buying on-line I'd be asked to use it to generate an added security number

[factor-fiction]

I think they are for debit card/online transfers rather than for credit card payments sandy.

But I know I often have trouble making online purchases by credit card as I can never remember the extra password I need for Verified by Visa etc

[seadogg]

Nationwide tend to do a security check involving the use of parts only of a previously arranged Password, but not in all cases.

[Mamyalynne]

I have to go through 'Verified by Visa' sometimes for purchases as low as £2 - is it not beyond the wit of the card issuers to do similar for credit cards ??

[jake-the-peg]

I believe if the goods are to be delivered to a location other than the card's registered address then it's at the retailers risk.

Depending on the nature of the goods and the value on-line retailers sometimes won't send them to a different address unless they've dealt with you before.

It also explains why the card issuers don't really care about such cases - if it's fraudulent the retailer ends up footing the bill.

Stolen credit cards are very popular for topping up mobile phones of course which is why the mobile companies like to register cards to phones and get antsy about new ones

There are many ways theives can capitalise on a stolen credit card