, FOR3703 ASSIGNMENT 2 SEMESTER 1 2026
DUE DATE: APRIL 2026
________________________________________________________________________
(TWO ANSWERS PROVIDED)
INTRODUCTION
Credit card fraud and cheque fraud are persistent financial crimes that continue to threaten
individuals, businesses, and financial institutions worldwide. These crimes are closely linked
to identity theft, where criminals unlawfully obtain and use another person’s personal or
financial information for financial gain. With the rapid expansion of digital banking, online
shopping, and electronic payment systems, fraudsters have developed increasingly
sophisticated methods to exploit both technological weaknesses and human behaviour.
Credit card fraud is currently one of the most common forms of identity theft globally, while
cheque fraud remains relevant in financial systems where cheque usage still exists.
Understanding the methods used in these fraud schemes is essential for prevention,
detection, and risk management in modern financial systems (SABRIC, 2024).
CREDIT CARD FRAUD METHODS
One of the most common forms of credit card fraud is card-not-present (CNP) fraud. This
occurs when criminals use stolen credit card details to make purchases without physically
presenting the card. These transactions typically occur online, over the phone, or through
digital subscription services. Fraudsters usually obtain card details through data breaches,
phishing attacks, or malware installed on victims’ devices. Because no PIN, signature, or
physical card is required, it becomes extremely difficult for merchants and banks to verify
the identity of the user. The rapid growth of e-commerce and digital payment systems has
significantly increased the prevalence of this type of fraud, making it one of the most
challenging to control (Smith & Kriel, 2023).
DUE DATE: APRIL 2026
________________________________________________________________________
(TWO ANSWERS PROVIDED)
INTRODUCTION
Credit card fraud and cheque fraud are persistent financial crimes that continue to threaten
individuals, businesses, and financial institutions worldwide. These crimes are closely linked
to identity theft, where criminals unlawfully obtain and use another person’s personal or
financial information for financial gain. With the rapid expansion of digital banking, online
shopping, and electronic payment systems, fraudsters have developed increasingly
sophisticated methods to exploit both technological weaknesses and human behaviour.
Credit card fraud is currently one of the most common forms of identity theft globally, while
cheque fraud remains relevant in financial systems where cheque usage still exists.
Understanding the methods used in these fraud schemes is essential for prevention,
detection, and risk management in modern financial systems (SABRIC, 2024).
CREDIT CARD FRAUD METHODS
One of the most common forms of credit card fraud is card-not-present (CNP) fraud. This
occurs when criminals use stolen credit card details to make purchases without physically
presenting the card. These transactions typically occur online, over the phone, or through
digital subscription services. Fraudsters usually obtain card details through data breaches,
phishing attacks, or malware installed on victims’ devices. Because no PIN, signature, or
physical card is required, it becomes extremely difficult for merchants and banks to verify
the identity of the user. The rapid growth of e-commerce and digital payment systems has
significantly increased the prevalence of this type of fraud, making it one of the most
challenging to control (Smith & Kriel, 2023).
