Sample Essay On Debit And Credit Frauds

The credit and debit card fraud is a fundamental issue that needs a global approach in order to curb it. It is important to note that debit and credit fraud is a multibillion-dollar problem affecting millions of individuals and organizations as well; however putting the exact cost into perspective is not an easy task.
It is difficult to quantify what the lump sum costs of fraud is because consumers and business pay some of them. Javelin Strategy and Research in its annual Identity fraud report disclosed that the cost of credit and debit card fraud rose to eleven billion dollars last year from eight billion dollar in the year 2012.Due to this, there is a global outcry to deal with this aspect as it affects business.
With the advancement in new technology, it is expected that incidents of fraud will continue to grow until the debit and credit cards industry embraces the use of new cards. These cards need to be embedded with the EMV computer chips, which have a tokenization and encryption systems, which offers additional features. This paper will seek to understand why it took long for the credit and debit card manufacturers to manufacture EMV cards even after the initial cards suffered the massive fraud cases.
This paper will strive to look at the cost of credit and debit frauds in the country. Also importantly, it will look at the impact of credit and debit fraud on the card issuers, merchants, acquirers and the processors. In the case a fraud happens, is it the cardholder, the manufacturer, the dealer, or the processor that bears the fraud cost?
Lastly, the paper will address the various strategic measures that are being undertaken by the government and debit and credit card manufacturers in order to curb the fraud vice.