Computer Crime Problems Research Center

Andrey Belousov


Safety problems in the field of plastic cards use 


The history of abuses with plastic cards began from the moment of their occurrence. All began simply: fraudsters used the lost or stolen cards. Then the first fakes have appeared also. The information about the account, embossed on a card, cut off by shaving edge, and on its place the new number that has been cut off from other card was pasted. This elementary method has received so wide distribution in the world that for it even the special term was born: shave and paste.

At the end of 70th widespread today scheme that has received the name “white plastic”, being, as a matter of fact, the further development of a method shave and paste has appeared. Numbers of the true cards embossed on prepared plastic cards, which are not having "recognition symbols" of bank and payment system (from here and the name - "white plastic"). To use "white plastic", criminals had to prevaricate with cashiers of trade enterprises. Cashiers divided with swindlers incomes from operation after payment of the false bill by bank. Besides in practice of swindle under the scheme " white plastic " the whole fictitious enterprises are often created. The shops owners should be very cautious in a choice of clients.

In 1981-82 years the fakes of cards became mass in full sense of this word. The picture was rendered on cards by a method of silk-screen printing. On such cards embossed valid numbers. At high enough quality of a fake these cards could be used without arrangement with cashiers. The industry of plastic cards has quickly arranged on struggle against this kind of swindle: the picture on cards began to render by method of a lithographic seal and to supplement it by complex for a fake elements, for example holograms.

Serious problem became interception of the cards sent to holders by mail. In this case, swindlers receive the true card in hands, and the bank - emitter or the holder find out about happened only after reception of the first account statement. Today, for struggle against this problem, many emitters conduct final personification of cards only after they will get to lawful owners.

With development of the market of retail non-cash payments the number of ways of swindle with plastic cards was increased also. Significant distribution, for example, have received swindle with cards in sphere of telemarketing.

Introduction of a magnetic strip on plastic cards was presented by press as a mean, which will reduce a level of swindle to zero. However appeared, that development of fake technical equipment practically does not lag behind development of technical equipment of a safety. As a measure of protection of the information on a magnetic strip emitters began to apply special verifying codes. As an example of them can serve code CVV (Card Verification Value) in system VISA and code CVC (Card Verification Code) in system Europay. Introduction CVV and CVC have essentially lowered an opportunity of use of cards with the forged magnetic strip. However these codes were weak copy protection of a magnetic strip. Holograms also became a subject of fakes; today cards with counterfeit holograms are made in big quantity in Asia.

The plastic card is the personificated payment tool giving to the owner an opportunity of non-cash payment for the goods and services, and also receptions of cash in departments (branches) of banks and bank automatic devices (cash dispensers). Trading enterprises accepting a card, branches of banks form a network of card service places (or a reception network).

The guarantor of payment obligations performance during service of plastic cards is the bank - emitter who has issued them.

Depending on given limits and conditions, cards share on two basic kinds: debit and credit. The owner of a debit card should deposit beforehand on its own account in the bank-emitter some amount of money. Such amount also defines a limit of money available. The payment by means of a credit card has other structure: for maintenance of payments the owner of a card can not preliminary deposit the money, and receive in the bank - emitter the credit.

Both credit, and debit cards can be also corporate.

Corporate cards of the company are connected to any its one account. They can have the shared and unshared limits. Corporate cards allow the company to watch on service charges of employees in details.

Frauds with plastic cards are spread basically on credit cards as at use of a debit card authorization is always spent, that is interpellated to payment system about confirmation of powers of a card bearer and his financial opportunities.

One of the basic functions of a plastic card - is maintenance of identification of its owner as participant of payment system. It is rational to keep the data on a card, as it is necessary for providing of automatic authorization procedure. For this purpose now in system of electronic payments exists three mechanisms: use of cards with a bar code, cards with a magnetic strip and smart-cards.

In cards with a bar code as an identifying element the code similar to a code, used for marks of the goods is used. Cards with a bar code are poorly protected from a fake that makes them little avail for use in payment systems.

Cards with a magnetic strip for today are most widespread. Their security is essentially higher, than in cards with a bar code. However and such type of cards is rather vulnerable for swindle. Nevertheless, the advanced infrastructure of existing payment systems, and, first of all, world leaders of "card" business - companies Master Card/Europay is the reason of a heavy use of cards with a magnetic strip today. For increase of security of cards of system VISA and Ìàstår Ñàrd/Åurîðàó additional graphic means of protection are used: holograms and non-standard fonts for emboss (drawings of a relief font).

In smart - cards a data carrier is already the microcircuit. In elementary of existing smart - cards (cards - memories) the memory size can have size from 32 bytes up to 16 kilobyte. Cards are subdivided into two types: with unprotected (fully available) and the protected memory. The level of protection of cards of memory is higher, than at magnetic cards, and they can be used in applied systems, including that in which financial risks are connected with swindle. Smart - cards are more expensive, than magnetic cards. Their cost directly depends from cost of the microcircuit, determined, in turn, by capacity of memory. Despite of it, smart - cards are considered now as the most perspective kind of plastic cards.

But card business is based on balance of interests of three parties: banks, the trading - service companies and owners of cards. For banks there is a sense in transition into microprocessor cards, as it - increase reliability and reduce possibility of swindle by reason of more exact identification of transactions participants. For owners of cards if the question is usual credit or debit products, by the highest standards, whether such cards will contain a magnetic strip or the microprocessor. For trade and service enterprises transition to microprocessor technologies is connected with enormous expenses: certification of terminals, their upgrade or replacement, preparation of the personnel.

Therefore, to carry out mass transition to microprocessor technologies, banks together with the trading - service companies and suppliers of technologies and cards should find the mutually advantageous decision. According to experts’ estimation, the capacity of the domestic market of smart - cards in two - three years will be approximately 5 million cards per year. By the end of 2005 it is necessary to replace about 7 million magnetic cards on chip in connection with the international agreement on a stage-by-stage outlet from the turnover of cards with a magnetic strip. [1]

Intensive introduction of bank plastic cards as the tool of payment for the goods and service in Ukraine is accompanied, as well as all over the world, by fulfillment of some illegal actions connected with their use.

During last years the criminality in sphere of bank plastic cards turnover sustained qualitative changes - from the acts made by singles and small groups, up to the crimes made by well organized groupings and criminal communities (number up to 50 person). On arms of such groupings there is the advanced technical equipment, necessary documents for cover. The qualified experts enter into them. [2]

For today from known kinds of fraud the full imitation of a card "is the leader". On preparations of completely forged cards the trademark of the emitter, a field for putting down the signature is rendered; all degrees of protection are precisely reproduced. In this case original properties of existing maps are used. On the international market in manufacturing and use of counterfeit plastic cards Southeast Asia "is the leader", the majority of operations is carried out from there. Actively working "branches" are in Spain, Italy and the Great Britain.

The leading part in this sphere belongs to the Hong Kong Chinese. The Asian groupings of criminals already for a long time make high-quality duplicates of cards, which both on Asian, and on European markets were used till now without risk. Necessary for manufacturing duplicates data (number of a card, date of determination, a name, etc.) criminals, as a rule, receive from employees of the enterprises - participants of the contract.

In second half of 90ties in sphere of full fakes of bank plastic cards in Europe the African groupings began to restrict Asian. Unlike Asians, Africans use fakes mainly in banks for direct reception of cash. Criminals even do not complicate themselves by “purchase of the goods ”that then, by passing a stage of concealment, give reason to receive money. Thus criminals prove their identity with the help of the stolen identification documents.

Full fakes used by Africans are made in the USA (the Western coast). In California (area of Los Angeles) workshops on manufacture of forgeries were repeatedly liquidated. On quality the Asian fakes are much higher then African’s.

Because of high enough quality of a fake these cards can be used without any arrangements with cashiers. The industry of plastic cards fights against this kind of swindle by complication of protection (the picture on cards began to render by a method of a lithographic seal and to supplement it with complex for a fake elements, for example, holograms).

Next, for the frequency of use, group, which can be united «illegal use of an original card», follows. Here it is possible to attribute:

·         Floor limit;

·         Operations with stolen, lost card;

·         So-called “ double rolling ” (manufacturing by the seller of slip’s several copies, which are used further for payment for the goods).

Ways of illegal purchase of cards are various: deliberate transfer to the third parties, criminal taking of a card (loss during mail transfer, theft, etc.)

Cases are known when unfair workers of banks and cards manufacturing plants use a delay between opening of the account and delivery of a card to the owner and make operations during this period.

There are facts when owners of a card declare it as stolen or lost. As a rule, while processing center will include the number in a stop -list and will notify shops passes some days. During this time the owner tries to carry out operations, and then declares claims to bank.

Perhaps it is necessary to refer to illegal use of an original card and a partial fake (falsification). By these acts the history of abuses with plastic cards actually began. The criminal (more often the owner) changes only some Essential Elements - number, or a surname. Accordingly, the goods are got, but not paid.

In this case the information about the account, embossed on a card, cut off (by thermal, mechanical or by any different way), and on its place the new number, which has been cut off from other card, is pasted. This elementary method has received so a wide spread in the world, that for it even the special name was born: "to shave and paste".

The bank plastic cards delivered by mail, as a rule, are abducted at transfer to the client from the emitter or the manufacturer. Such cards have a number of preferences for criminal use:

·         Loss (theft) of similar cards is noticed with the big delay therefore there is no opportunity immediately to block a card;

·         Cards at the moment of loss, as a rule, are not signed, therefore the criminal himself can put the signature on a card; later at their use there is no necessity to forge the signature on the debit bill.

Abroad are known cases when criminals specially got a job in a post-office or in private delivery services that in an operating time directly to withdraw mailing with bank cards or to redirect them on prepared by them the post address.

At the end of 70ties fraud scheme that has received the name very spread today “ white plastic ” has appeared.

Such cards have no "recognition symbols" of bank and payment system (from here and the name). The data of existing cards (stamping and coding) are transferred to a clean sheet of plastic (without a trade mark of the emitter, the hologram and other degrees of protection). Such cards can be presented only under condition of criminal complicity of the owner or employees of the enterprise - participant of the contract as the forgery is visually defined immediately. Further “washing” (masking) of slips (checks) among original is made. Under the debit bill formed as a result of use of " white plastic ”, later already practically it is impossible to determine, whether the true or counterfeit card has been presented.

Besides in practice of swindle under the scheme “ white plastic ” the whole fictitious enterprises are quite often created. The shops owners it is necessary to be very cautious in a choice of clients.

Recently one more version of " white plastic ” has appeared. Criminals forged an electronic or magnetic data carrier on cards and obtained money by means of automatic cash terminals.

It is not alien to criminals and technical progress. With development of a global computer network -the Internet and occurrence so-called “ virtual shops ” where it is possible to make the order from a personal computer on reception of the goods by mail, has extended a field of action for swindlers. For payment in such shops it is enough to specify Essential Elements of a card. Hence, any outflow of such information (and it can be any operation) is fraught for the owner with the big losses. And there are many opportunities to obtain Essential Elements from the card owner. Already it is known about 30 methods of fraud actions with the help of the Internet that now are, actually, outside of a legal field, and that facilitates "job" of a different sort of criminal elements. [3]

So big quantity of crimes in sphere of plastic cards turnover threatens to undermine authority of a plastic card as financial tool. Recent scandal with discrediting of the Russian emitters bankcards has induced many users to pass to traveler’s cheques.

In the beginning it were singles, now for the fraud the organized criminal groups by number up to 50 people, armed with the advanced technical equipment have undertaken. Their members have reliable cover documents and use consultations of highly skilled experts. For realization of illegal activity criminals create fictitious firms and banks. The firm, which gave intermediary services of foreign payment cards registration, is recently exposed. Swindlers opened corporate accounts, representing them for clients as individual. When owners were convinced, that cards normally function in the country and abroad, they transferred high dollars and criminals, who had the equal with clients’ rights to command finance, spent these money at own discretion. Until now operated over ten such groups which transferred money obtain in offshore zones. With assistance of processing the companies law enforcement bodies were success to stop activity of some fake firms, and their organizers were instituted to criminal proceedings.

Other widespread kind of crimes - is illegal use of original cards. The mentioned kind of crime consists of operations with the stolen or lost card, manufacturing by the seller of additional copies of payment cards, which further are used, for withdrawal of money from account.

The big problem lied in that for payment for the goods ordered it is enough to specify card Essential Elements. Hence, any information about the card for the owner can turn back by irreplaceable losses. And there is great variety of ways to swindle essential elements of cards from the owners.

With help of the Internet it is made more than thirty kinds of fraud actions.

The growing quantity of crimes in this sphere, for some people opinion, threatens to undermine authority of cards as reliable financial tool. However such pessimistic view at a developed situation does not mean, that there is no way of problem solution. There is a way, but it is necessary to keep a closer watch for plastic cards safety infringements from the outside. It is necessary to take the following measures for this purpose:

·         To increase number of degrees of plastic cards protection;

·         To secure microprocessors against undesirable attacks from the outside;

·         To keep plastic cards in reliable places and far away from extraneous eyes;

·         Immediately to block bank accounts in case of loss of a plastic card;

·         To protect computer networks from hackers.

It is necessary to note, that now there are reliable means of protection of the computer data, but they, certainly, demand additional expenses. Many banks do not give any attention to such questions as:

·         Bank has the security department, doesn’t it?

·         Security department supervises telephone input and power cable, doesn’t it?

·         Bank plastic cards managers’ authorities are differentiated, don’t they?

Such unconcern of bank in the future will lead it to serious troubles. It is vulnerable for intervention, that make it like a boon for electronic and other thieves.

"Plastic" encroachments - is the kind of crimes completely new to our reality that develops not by days, but by hours. Unfortunately while, about safety in sphere of the bank plastic cards turnover are not think enough.

It is necessary to remember constantly, that the corner stone of any payment system is:

§           Necessity of maintenance of its safety;

§           Reliable storage of codes;

§           Constant monitoring of transactions;

§           The regular control of activity of employees;

§           Scheduled (and off-schedule) check of the equipment;

§           Audit of the software of computer system;

§           Careful investigation of each case of swindle with plastic cards.

Banks are forced to search for all new and new ways of struggle against swindle. Stagnation in the field of protection is very dangerous; therefore it is necessary to improve constantly, and to introduce - quickly and in wide scales, modern technologies of protection that is very uneasy. However rate of growth of abusing with cards compels all participants of "card" business to solve this problem. Changes are not far off.

As it was mentioned, the criminality in sphere of plastic cards develops in parallel with the industry of cards. Experience of the international payment systems of introduction of "card" programs in the different countries has shown, that development of swindle submits to the certain rules. As a parameter of a crime rate the ratio between payment systems losses from swindle and card turnover serves. Within first two years from the beginning of introduction of plastic cards in scale of the country the crime rate remains practically zero, and then quickly grows up to 0,7-0,8 % and some time is kept on this mark. So sharp growth is caused by a number of negative factors that are typical for the given stage of development of the market.  The following factors can be refer to global:

·            Absence of legislative and normative base concerning plastic cards;

·                Absence of security department (specially focused on plastic cards) in banks - members of payment systems;

·                Where such services are created, experts still do not possess experience of struggle against fraud and necessary knowledge about protection;

·                Law enforcement bodies are not ready to revealing and suppression of swindle;

·                There are no divisions and experts on swindle with plastic cards;

·                There is no necessary interaction of banks security departments among themselves, with security departments of payment systems, law enforcement bodies;

·                Insufficient experience of bank plastic cards managers;

·                Absence of due staff training at all stages of work with plastic cards.

Duration of a high level of losses depends on as far as quickly it will be possible to organize the "defense" including the whole complex of measures: from organizational up to legal. Exactly at the stage of the biggest losses from fraud the decisive steps, called to protect the industry of plastic cards at a national level, as a rule, are accepted, that appreciably promotes decrease in a level of swindle. Decrease occurs gradually and stops at a level of losses of 0,1-0,2 % which it is considered to be "normal". This value is typical for today in the countries with the advanced "card" payment systems.

Interaction of securities of banks among themselves constantly becomes stronger. Are adjusted, though and in an insufficient level, an exchange of experience and mutual aid in revealing and suppression of swindle. Seminars about the questions of plastic cards safety are even more often carried out. The problem of training of the personnel of the enterprises accepting cards for payment, also stands today sharply enough. Its solution, certainly, is in hands of merchants, which first of all are interested in that at the enterprises with cards qualified people dealt. Company UCS, for example, spends compulsory education of cashiers with a passing examinations for the clients and is ready to spend this job under the order of others merchants.

The bodies created by the state for struggle against crimes in this area, are compelled to spend the basic forces and time not for detention of criminals, but on drawing up of accusations. The only thing, than operatives can be guided, is article 200 of the Criminal Code of Ukraine. [4] However acquisition and fixing of proofs, which get rather not simply (even at absolutely competent actions of cashiers when the last are succeed to obtain the signature of the swindler on slip, taken off from a "illegal" card) are necessary for application of mentioned article. Acceptance of the criminal law with corresponding definitions of structure of crimes, undoubtedly, much more would increase law enforcement bodies work effectiveness.

The market of plastic cards in Ukraine recently promptly extends. The number of the banks emitting and serving plastic cards both Ukrainian, and the international payment systems grows also. However for the majority of people a card still remain the unusual payment tool, and practically there are no concrete laws protecting the rights and money of holders of cards, in Ukraine till now. It is one of the important factors promoting increase of number of a various sort of fraud with cards.

With development of any market the quantity of crimes on it always grows, and the market of credit cards in this respect did not become exception.

Today cards are accepted for payment on hundreds enterprises. It is known more than ten kinds of crimes with use of cards: use of the stolen or lost cards, forged (in full or in part) cards and so-called " white plastic ". Swindlers well mastered cards manufacturing technology including foreign, and prefer to use the forged plastic cards, instead of lost or stolen.

In the Great Britain the new system of protection against swindle with use of plastic payment cards is entered. Into credit and debit cards "will be implanted" a special microchip and from their owner it is required instead of the signature on the check to confirm payment, using only to him known confidential code. Bank community of the Great Britain develops the new system of safety in sphere of non-cash electronic payments. Its introduction will demand expenses, which in total will exceed 1,1 billion pounds sterling. However introduction of more perfect, than existing, system of protection against any sort of schemers became necessity in the Great Britain as only in 2001 swindle in this sphere cost to banks and the financial companies about 400 million pounds sterling. As expected, during the nearest three years replacement of old credit and debit cards on new will be carried out. As a result of it "will be covered" about 100 million pounds sterling - a significant part of operations from total amount of electronic credit - payment activity of bank institutions.

The British banks annually lose about 300 million pounds sterling as a result of swindle with plastic cards. By 2005 these figures, by estimation of experts, can increase up to 800 million pounds.

As a result, the British bank community started negotiations with the Ministry of Internal Affairs about assignment for reinforcement of special divisions on struggle against these kinds of crimes.

Also banks and the companies related to issue and maintenance of plastic cards circulation, plan to enter by 2004 into turnover in the Great Britain so-called "smart - cards" which have advanced level of protection. The project is estimated in 1,1 billion pounds sterling.

British detectives periodically " catch red-handed " criminal groups which steal banks and their clients with the help of counterfeit plastic cards. Thus swindlers create the whole network from helpers and assistances - they fill up "databanks" of criminals about numbers and codes of plastic cards. [5]

Till the end of 2002 the increase in fraud operations with cards almost twice - proportionally to growth of credit cards is predicted. Insurers and bankers just now undertake to insure such risks.

Until information interchange between security departments of banks and the mentioned above special divisions of the Ministry of Internal Affairs will be adjusted, it will be difficult for last to reveal such crimes.

Domestic financiers have led themselves by old tradition: about protection against swindle with payment cards have started to speak only then losses from swindle with "plastic" began to exceed 1 % of volumes of operations. Bankers at once have recollected sad European experience - there sharp-witted swindlers every year rob banks on 10 % of volumes of operations on card accounts. In 1999 Master Card has registered frauds with cards for the sum 703 million dollars.

VISA has suffered losses because of swindle with credit and debit cards all over the world on 1,2 billion dollars. Most of all observers are amazed with the data from the Great Britain, which banks card swindlers during the last year has robed on 300 million pounds sterling. So it is not surprising, that financiers of the Old World have launched large-scale insurance campaign to minimize the losses from roguish activity. In Ukraine insurers, as appeared, are not ready to such programs yet - not everyone can agree with potential clients - banks. [6]


Struggle against fraud with cards

The latest data of association APACS show, that the measures taken by banks against fraud with cards have started to work. Now for maintenance of the further distribution of debit cards banks should solve a problem of their check.

The data of Association for Payment Clearing Services (APACS) show, that financial community of the Great Britain have seriously begun struggle against fraud with plastic cards.

The figures submitted by association APACS, as a whole, confirm the tendency of decrease of losses, earlier shown by the data of association VISA and Barclays Bank, though the difference between 30 %-s' decrease about which informed Barclays Bank, and 21 %-s' decrease in all financial sphere, as a whole shows, that situation could be better. However banks can sigh with simplification, seeing obvious results of measures of struggle against fraud with the cards, undertaken partly under pressing of the government, demanded to make conclusions from the report of the Ministry of Internal Affairs.

Association APACS specifies, that complication of checking - is major of the factors able to reduce number fraud with cards. The special attention was given to mentioned factor in such sectors of retail trade, as shops of the electronic technique, jeweler’s and grocery, which became objects of fraud more often. It is informed, that as a result of the accepted measures the number of fraud with the lost or stolen cards in these sectors of high risk has decreased for 75 %. Complication of checking has been distributed and on others sectors of retail trade. Due to agreements between banks and company British Telecom cost of operative checking have decreased approximately twice.

Besides now the large enterprises of retail trade use services of general banking notification system for obtaining the information about the lost or stolen cards. It is the big progress in comparison with former systems, which covered only separate banks or groups of banks. Measures of protection during the process of cards emitting and their extraction from checking machine also have considerably reduced the losses connected with cards, which have not been received by their lawful owners.

Several years ago discussion of fraud with plastic cards would touch, probably, only credit cards. However the new data of periodicals show that nowadays with debit cards is made approximately as much operations, as with credit. On debit cards the prevailing share of the general increase in volume of operations with cards is fall on. More often credit cards VISA were used, on them 25 % of operations, against 16 % for cards Access, 20 % for cards Switch and 22 % for cards VISA Delta were fall on. Debit cards have caught up credit on number of operations on one card.

Banks, certainly, want, that operations with paper checks have been superseded by cheaper operations with debit cards. But there is one aspect in which encouragement of wider use of a debit card could enter in contradiction with struggle against fraud.

Recently an occasion for attacks on banks from the part of the Labor party and societies of protection of consumers became a question about time between reception of the check and transfer of money to the client account. Questions discussed about what income is received by banks during this time, since what moment the income starts to go to the client, and a question about payment of percent for overdraft. But after downturn of an allowable bottom limit of account balance of the client the decision on acceptance of a debit card can depend on a status of those his cash assets on which transactions are not executed yet.

Refusal in reception of payment by card - is the basic difficulty for its owner. If as a result of operative checking a card will not accept because of lack of money on the account, the confused owner can seized a checkbook. If yesterday on your account has been written out receipt check how you will act today - will show the check with a guarantee card or will use a debit card with risk to be refused because the money are not enlisted yet on your account? In fact you can simply not know, how much money to your account. Rules do not allow to written out a check, if it does not have covering, but in practice you will seize a checkbook, instead of debit card.

An expense of time for transactions under checks are regulated by the law of 1882 demanding receipt of the check in bank on which it is written out. For speeding-up of documents processing this position is necessary to change, but in the nearest future there is no chance to expect such change. Nowadays at debit cards checking it is necessary to show tactfulness to not frighten off the client by refusals, because he can refuse from a debit card equally easy as before it has taken.


Safety in the field of plastic cards: job of law enforcement bodies

No doubt that one of basic elements of national system of a safety in sphere of plastic cards should become special divisions of law enforcement bodies. Only the prepared experts well understanding in features of plastic cards and methods of counteraction to swindle with their use, are able to resist organized on an international scale groupings. However, for struggle against homebrew swindlers too are necessary knowledge and experience.

However creation of such special divisions in regions only is declared, while. Systematic job on a professional training in the field of plastic cards it is not conducted yet. Besides, fast occurrence of the skilled staff in regions is difficult to expect also for that simple reason, that swindle with plastic cards in regions while are rare.

Until recently the majority of crimes with use of plastic cards was made in Kiev. It is natural - here are concentrated the majority of points of plastic cards service of the international payment systems, and the majority of holders of these systems cards.

More often ordinary employees of police and employees of investigation departments of Regional department of internal affairs are involved in job on suppression of crimes with use of plastic cards (at a stage of detention) though their preparation, and it’s obvious, insufficient for successful work in this sphere.

Cases when police officers release of swindlers detained by the servants points workers, even not made the report and not established personality of arrested persons are still frequent.

With the big difficulties inspectors are faced in Regional department of internal affairs. In fact for competent conducting an affair it is necessary to know specificity of the given sphere well. To tell the truth, representatives of security department of the banks and processing companies never refuse employees of law enforcement bodies in consultations, however practically each inspector should explain the bases of specificity of plastic cards, to allow recommendations on conducting investigatory actions, etc.

In conditions of fast development of card business and, hence, growth of number cards frauds position this situation will be aggravated because it will be necessary to involve more and more inspectors who are not having required preparation in investigation.

To change this situation, it is necessary to operate in two directions:

·         To enter into the program of training of police officers even an elementary course about plastic cards;

·         To pass on places all affairs on the plastic cards to special selected workers who have no necessity to explain elementary things (by the way, restriction of a circle of people informed on methods of swindle with "plastic", will do good and will help to reach the main task - safety of operations with plastic cards).

The same approach should be applied, probably, and in Office of Public Prosecutor. Cases when because of insufficient preparation of inspectors and ignorance by public prosecutors of features of the crimes made with use of plastic cards, the obvious swindlers catch red-handed, left the responsibility are known. Public prosecutors simply did not see in materials of an affair of structure of a crime.

Misunderstanding of features of crimes in the field of cards - one of the reasons of insufficient interaction of law enforcement bodies and security departments of members of payment systems in struggle against this kind of criminality. And without such interaction any investigations in the given area it is practically impossible. As a rule, the affected party (the bank - emitter, the holder of a card) is abroad. For the various reasons for law enforcement bodies it is difficult to direct searches to foreign banks. The organizations being members of payment system, receive the necessary information from foreign partners without effort. However not all banks go in this question towards to law enforcement bodies. On the other hand, many representatives of security departments of banks show discontent with that, that the policy does not undertake any practical steps under their applications.

Clearly, that the coordinated actions here are necessary and quite possible, as both parties are interested in them. Special preparation of employees of law enforcement bodies and increases of efficiency of their interaction with corresponding divisions of the ministries and departments and with security departments of commercial banks is necessary. [7]

The problems raised in this article demand the complex decision as in sight of law enforcement bodies 15 % from the perfect crimes of a similar sort get only.

In this connection effective struggle against crimes in the plastic market is possible intimate contact of professionals of security departments, experts of banks and processing companies with law enforcement bodies.

As practice shows, struggle against crimes in the given sphere of credit-and-monetary relations efforts of only one law enforcement bodies is rather inconvenient. Unfortunately, in our country the legislation, as a rule, lags behind a real life.

It is available also objective difficulties of law enforcement bodies: lack of money does not allow to support a hardware on proper level, to train qualified employees, to organize in enough official journeys for participation of employees in the seminars conducted by leading payment systems and banks. It is necessary to note as a negative factor that absence of effective legal regulation does not allow to organize in appropriate way interaction with security departments of interested organizations, turning all into personal contacts.

All this creates serious problems for struggle against criminality in sphere of bank plastic cards turnover. Dynamics of such criminality does not give optimism.

The Ukrainian industry of plastic cards has approached to that moment of development when questions of safety can and should be solved jointly by all participants of the market. Efforts unification today will bring feedback in the near future. Today we have real opportunity to create a safety of payment systems at a national level, and this opportunity cannot be missed.



1. Swindle with plastic cards,

2.Golubev V.A. « Problems of criminality and bank technologies » Corporate systems ¹ 3/2002 with 78

3. Machin Sergey “ the Plastic card - a target for swindlers ”,

4. The scientific - practical comment of the criminal code of Ukraine/under edition of deserved lawyer of Ukraine, the candidate of jurisprudence Ì.Melnik, the candidateof jurisprudence M.Havronjuk/.-Ê.: "Êànnon", “ À.Ñ.Ê. ".-2001.-pages 506-508.

5. Ukrsotsbank - bank of social development,

6. Card swindlers go to Ukraine. It is time to be reinsured // Galitskie Contracty. - ¹17, on April, 29 - on May, 5, 2002,

7. Golubev V.A. « Problems of struggle against crimes in sphere of computer technologies use», University of the Humanities "ZISMG", Zaporozhye 2002,-page 29.

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