, FOR3703 Assignment 2 Semester 1 2026 – DUE 2026
QUESTION 1: Credit Card Fraud and Cheque Fraud
Financial crimes involving credit cards and cheques have become increasingly
common in modern banking systems. Technological advancements, the growth of
online transactions, and the increasing digitisation of financial services have
created opportunities for criminals to exploit weaknesses in financial systems and
human behaviour. Fraudsters continuously develop sophisticated methods to gain
unauthorized access to financial information, steal identities, and conduct illegal
transactions. Two of the most prevalent forms of financial fraud are credit card
fraud and cheque fraud. These crimes not only cause financial losses to
individuals and financial institutions but also undermine trust in the financial
system.
Credit card fraud involves the unauthorized use of a person's credit card or credit
card information to make purchases or withdraw funds without the cardholder’s
permission. On the other hand, cheque fraud involves the illegal use of cheques
to obtain money through deception, forgery, or manipulation. Both crimes are
forms of identity theft because they involve the misuse of personal or financial
information belonging to another person or organisation.
This discussion examines the different types of credit card fraud used by criminals
to commit identity theft and further explores various cheque fraud schemes used
by fraudsters to make fraudulent payments.
1. Credit Card Fraud
Credit card fraud refers to the unauthorised use of a credit card or credit card
information to obtain goods, services, or money without the cardholder’s
consent. Fraudsters exploit weaknesses in payment systems, online platforms,
banking procedures, and consumer awareness.
QUESTION 1: Credit Card Fraud and Cheque Fraud
Financial crimes involving credit cards and cheques have become increasingly
common in modern banking systems. Technological advancements, the growth of
online transactions, and the increasing digitisation of financial services have
created opportunities for criminals to exploit weaknesses in financial systems and
human behaviour. Fraudsters continuously develop sophisticated methods to gain
unauthorized access to financial information, steal identities, and conduct illegal
transactions. Two of the most prevalent forms of financial fraud are credit card
fraud and cheque fraud. These crimes not only cause financial losses to
individuals and financial institutions but also undermine trust in the financial
system.
Credit card fraud involves the unauthorized use of a person's credit card or credit
card information to make purchases or withdraw funds without the cardholder’s
permission. On the other hand, cheque fraud involves the illegal use of cheques
to obtain money through deception, forgery, or manipulation. Both crimes are
forms of identity theft because they involve the misuse of personal or financial
information belonging to another person or organisation.
This discussion examines the different types of credit card fraud used by criminals
to commit identity theft and further explores various cheque fraud schemes used
by fraudsters to make fraudulent payments.
1. Credit Card Fraud
Credit card fraud refers to the unauthorised use of a credit card or credit card
information to obtain goods, services, or money without the cardholder’s
consent. Fraudsters exploit weaknesses in payment systems, online platforms,
banking procedures, and consumer awareness.
