Description
Credit card Frauds and its effects on CIBIL rating
CREDIT CARD FRAUDS
WHAT IS IN TO DISCUSS….
• • • • • • • • • What is Credit Card What is Credit Card Fraud Types of Credit Card Frauds Protecting yourself from Frauds Reporting such Frauds CiBil Promoters of CiBil Functioning of CiBil Advantages of CiBil
What is a Credit card?
• A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. Now a days credit card has become a household term . It is very handy and useful
What is a Credit card Fraud?
• Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction..
TYPES OF CREDIT CARD FRAUDS
• Ignorance is not a Bliss
– Unauthorized charges to your credit card. – Skimming /Counterfeit cards- Employees of a business steal customer information
• Identity Theft
– – – – Application Fraud/Account takeover. Dumpster Diving Shoulder Surfing Lost card
• Online Fraud
– Phishing – Emails are diverted by criminals
PROTECTING YOURSELF FROM FRAUDS
• • • • Avoid “Automatic Sign On” Use Digital Keyboard. Keep data handy Be cautious using credit card on stores / restaurants • Notify your credit card company for address change / if you are going to be traveling or making any unusual large purchase so that your account is not flagged for possible fraud • Report any questionable charges to your card issuer immediately • Contact your card issuer right away if your bill doesn’t arrive around the usual date.
Condt..
PROTECTING YOURSELF FROM FRAUDS
• Shred unwanted credit card solicitations before discarding • Use alert option • Insurance Policy for misuse of card • Never write your T-Pin / I-Pin • Banks doesn’t ask for details through Email • Scratch out your CVV number
REPORTING CREDIT CARD FRAUD
• To report credit card fraud – Call your card company immediately about • Lost or stolen cards or PIN numbers • Unauthorized charges on your statement – Request a fraud affidavit – Get a police report if necessary
CIBIL
• What is CIBIL? Credit Information Bureau (India) Limited An organization that collects data pertaining to ? Identity data about Consumer (Individual) and Commercial (Business) entities ? Credit Information ? Payment History ? Compiles Credit Information Reports on consumer and commercial borrowers and makes these available to members on request.
CIBIL – The Promoters
India’s largest bank
India’s largest HFC
40%
40%
10%
Amongst the world’s largest consumer bureaus
10%
Dun & Bradstreet
World’s leading provider of B2B credit information
Functioning of CIBIL
Advantages of CIBIL for Banks & Credit Grantors
• SME’s - Lower cost of Credit evaluation • Increased profitability. • Lowers default risk by assisting Banks/Credit grantors improve their credit portfolios • Faster processing of all the applications for bank loans, thereby leading to time and cost savings for credit evaluation.
• Better credit pricing depending on borrower performance.
• Provides access to better credit information by allowing credit grantors to exchange credit information while ensuring they do not lose their competitive advantage • Allows credit grantors to price the risk appropriately
Benefits of CIBIL For Borrowers • Provides faster access to credit
• Reduces cost of borrowing for borrowers with good credit records
• Reduces subjectivity in the credit assessment
process
• Encourages borrowers to maintain greater self discipline in acquiring financial commitments
• Allows borrowers to build reputation collateral by following correct repayment behaviour
• Know Your score* - www.Cibil.com
Thank You..
doc_253977412.ppt
Credit card Frauds and its effects on CIBIL rating
CREDIT CARD FRAUDS
WHAT IS IN TO DISCUSS….
• • • • • • • • • What is Credit Card What is Credit Card Fraud Types of Credit Card Frauds Protecting yourself from Frauds Reporting such Frauds CiBil Promoters of CiBil Functioning of CiBil Advantages of CiBil
What is a Credit card?
• A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. Now a days credit card has become a household term . It is very handy and useful
What is a Credit card Fraud?
• Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction..
TYPES OF CREDIT CARD FRAUDS
• Ignorance is not a Bliss
– Unauthorized charges to your credit card. – Skimming /Counterfeit cards- Employees of a business steal customer information
• Identity Theft
– – – – Application Fraud/Account takeover. Dumpster Diving Shoulder Surfing Lost card
• Online Fraud
– Phishing – Emails are diverted by criminals
PROTECTING YOURSELF FROM FRAUDS
• • • • Avoid “Automatic Sign On” Use Digital Keyboard. Keep data handy Be cautious using credit card on stores / restaurants • Notify your credit card company for address change / if you are going to be traveling or making any unusual large purchase so that your account is not flagged for possible fraud • Report any questionable charges to your card issuer immediately • Contact your card issuer right away if your bill doesn’t arrive around the usual date.
Condt..
PROTECTING YOURSELF FROM FRAUDS
• Shred unwanted credit card solicitations before discarding • Use alert option • Insurance Policy for misuse of card • Never write your T-Pin / I-Pin • Banks doesn’t ask for details through Email • Scratch out your CVV number
REPORTING CREDIT CARD FRAUD
• To report credit card fraud – Call your card company immediately about • Lost or stolen cards or PIN numbers • Unauthorized charges on your statement – Request a fraud affidavit – Get a police report if necessary
CIBIL
• What is CIBIL? Credit Information Bureau (India) Limited An organization that collects data pertaining to ? Identity data about Consumer (Individual) and Commercial (Business) entities ? Credit Information ? Payment History ? Compiles Credit Information Reports on consumer and commercial borrowers and makes these available to members on request.
CIBIL – The Promoters
India’s largest bank
India’s largest HFC
40%
40%
10%
Amongst the world’s largest consumer bureaus
10%
Dun & Bradstreet
World’s leading provider of B2B credit information
Functioning of CIBIL
Advantages of CIBIL for Banks & Credit Grantors
• SME’s - Lower cost of Credit evaluation • Increased profitability. • Lowers default risk by assisting Banks/Credit grantors improve their credit portfolios • Faster processing of all the applications for bank loans, thereby leading to time and cost savings for credit evaluation.
• Better credit pricing depending on borrower performance.
• Provides access to better credit information by allowing credit grantors to exchange credit information while ensuring they do not lose their competitive advantage • Allows credit grantors to price the risk appropriately
Benefits of CIBIL For Borrowers • Provides faster access to credit
• Reduces cost of borrowing for borrowers with good credit records
• Reduces subjectivity in the credit assessment
process
• Encourages borrowers to maintain greater self discipline in acquiring financial commitments
• Allows borrowers to build reputation collateral by following correct repayment behaviour
• Know Your score* - www.Cibil.com
Thank You..
doc_253977412.ppt