How Credit Card Fraud Sank One Bitcoin Exchange
One of the biggest problems for bitcoin exchanges and their customers is often making the exchange quick and easy. Exchanges like Canadian firm Virtex made the decision a long time ago not to accept credit cards. Their biggest concern? Fraud, in the form of chargebacks. In a credit card chargeback, a credit-card paying customer asks the issuing bank (the bank that gave them the card) to reverse a transaction made with a merchant. This can happen for a variety of legitimate reasons. A merchant may not have delivered the promised goods or service, or it may have been faulty. In some cases, a....
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ACI Worldwide, a Florida-based payment system firm, has released a study which revealed that more than one third of Singaporeans have faced card fraud since 2014. The statistic demonstrates the seriousness of the underlying vulnerabilities discovered in the security systems of credit card operators and credit card networks. Technically, when a credit card purchase is made either online or at a physical location, the private key of the credit card is retrieved by the processing party. That means, the business or person receiving the credit card payment holds the responsibility of storing....
Some serious questions are waiting to be answered when it comes to dealing with online payment fraud. Most of the issues associated with credit card payments stem forth from user data being stolen, and sometimes, that is the end user’s fault.Britain’s most senior police officer feels online fraud victims should not be reimbursed by banks. Sayings like these will eventually push consumers to Bitcoin and alternative forms of finance. “No Need To Refund Online Fraud Victims”. Nothing is more annoying than seeing a credit card statement with charges for items and services the owner did not....
Five members of the US Army National Guard have been arrested. All of the suspects are involved in an illegal scheme involving stolen credit cards bought with Bitcoin. The news broke on May 23, 2016 when a message appeared on the US Department of Justice website regarding the incident. The official source mentions how four US Army National Guardsmen have....
Major Banks and credit card companies such as American Express have developed “fraud free” and encrypted chip-enabled cards to cut costs while transferring the burden of fraud compensation onto the merchant. However, many are still unaware that a cheaper and more secure technology already exists. The credit card manufacturers have integrated EMV chips (Europay, MasterCard and Visa) into the credit cards, which create unique payment codes for every transaction. The implementation of the EMV technology disables the duplication of payment credentials to settle other transactions.....
In news that underlines the vulnerabilities of credit cards compared to bitcoins, law enforcement officials have busted an alleged global credit card fraud ring that amassed $200 million (US) in charges. The risks of credit-card fraud and theft are a big reason many Bitcoiners say they prefer digital currency. When it comes to trust, credit card companies have made the Hall of Shame, leading in poor user satisfaction ratings, besting banking, cable, phone and insurance companies. Using a credit card for online purchases, Mozilla developer Kumar McMillan has noted, is "like giving someone....