Credit Cards security problem in Ukraine
By Andrey Belousov
Date: August 05, 2003
The increase in volumes credit cards emission makes their security more and more crucial problem. Cards are emitted in the mass and are rather cheap, that's why the risk of plastic cards swindle grows also. In spite of the fact that ways of fighting fraud are constantly improved, losses of banks make millions dollars. Plastic Cards fraud is the 2 billion dollars of losses a year. There are a lot of small and medium banks working in Ukraine, but they are not in a position to spend efforts and funds for safety. In result the level of plastic cards swindle in Ukraine is much higher than in world, and quality of service is lower.
"Skimming" is a prevailing kind of plastic cards fraud. It includes the copying (or falsification) of the data from a true card (80-90 %). Swindlers use the stolen or lost maps also. According to statistics, only 15 % of these drop in sight of law enforcement bodies. It is possible to define three types of swindle: fraud on the part of the seller, the buyer and the third persons. The last is most distributed. Internet abounds with programs for generation of cards numbers, there are lists of true cards numbers, information on cards owners, etc. However due to interaction of sellers, banks and law enforcement bodies the swindlers are caught red-handed. And the stolen money are returned to the victims, even in case malefactors are not detained.
There are no official statistics on these crimes in Ukraine for today. According to informal sources, losses from activity of "carders" in Ukraine make about 1 % of cards circulation. According to the requirements of Visa and Europay, this figure should not exceed 0,14 %.
Creation in Ukraine of Intellectual Property and Hi-Tech Crime Unit has a positive influence on a situation in this area. The high-skilled experts engaging in fighting fraud are capable to counteract against the domestic and international organized criminal groupings.
Computer Crime Research Center
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