Credit card fraud

Although in recent years they have seen the development of solutions in order to reduce the number of frauds in financial transactions. It is still possible to find ways to apply a scam. Since card transactions have instabilities that are exploited by offenders to commit crimes.

According to The True Cost of Fraud research conducted in Mexico in 2019, card transactions were responsible for a large part of the number of crimes related to financial transactions last year. Thus, this type of coup had a participation of forty-five and twenty-seven percent.

«Although PINs are essential to use cards at ATMs or point of sale terminals. In most cases, sales location mechanisms do not request the customer's PIN and companies are rarely validated. This is what the institution responsible for the research presents.

Learn more about financial services fraud

Many commercial points identification is essential to make a financial transaction. Despite this, this procedure is only carried out when purchases exceed a stipulated amount. So, the standards are not enough to guarantee the safety of the customers and in many cases the safety standards are not properly followed.

So that a stolen card is susceptible to fraud. Add to that, a good part of the cards distributed by Mexican financial institutions use magnetic stripe technology. Which in turn facilitates the application of some strokes.

According to the study, the most common financial crimes related to cards are:

• financial transactions without the obligation to show the card (such as online purchases);
• credit or debit card cloning;
• credit card lost and found by a scammer;
• identity theft due to the use of an adulterated card.

Measures of the Mexican government

The investigation indicates that the Mexican government seeks solutions to make financial transactions more accessible to all citizens. This is the case in a country where more than 50% of citizens do not have access to banking services.

So the government is looking to create a digital payment system that will be managed by the central bank. And with this system, many Mexicans will have access to financial services in a simple and uncomplicated way.

According to the report, which included data from more than 80 companies dedicated to retail, e-commerce and financial services, fraud in Mexican territory represents approximately 2% of the annual profit of these companies in the last year.

Besides, the majority of the population continues to use traditional forms of payment. However, more applications and other means of payment are growing in Mexico, which in turn increases the risk of new frauds.

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Tips to keep credit cards always available