A Study Of Commercial Bank Credit Card Fraud Risk Management

In the recent years, commercial bank had a vigorous development in the domestic credit card business, the number of credit cards issued has a sharp rise since it begun. However, the act of dishonesty had also increased proportionally, which brought risk to the business or damage to the turnover. Commercial bank now faced a serious problem of how to maintain the credit card business but, at the same time, prevent damage cause by dishonesty to the card holder, the bank and to the society. An effective system is urgently required to control the present situation.After analyzing different dishonest cases happened locally from different bank and past history, forge identity used in application of cards is the most common cases. Comparison and closed study into successful solutions by several oversea banks, together with reference to the risk management theory of credit card dishonesty. As forge identities cases contributes the most losses in Credit card business, priority should be given in focusing for a solution to stopped or measure to prevent such cases. Through perfecting the infrastructure, improving on the operation procedure, setting up of risk management linkage from the beginning between all departments; so as to reinforce the control of risk management or to prevent dishonesty cases right from the beginning. Thus enhancing an healthy and steady growth for local Credit Card business.Firstly, articles on the definitions, categories, present situation of dishonesty cases and their analysis from local and oversea related organization.Secondly, articles showing different case to case study and different experiences and methods of risk management by oversea banks; summarizing the deficiency of management to similar cases locally. Through data comparison, a thorough exposit indicating the urgency of prevention and deficiency of existing system.Thirdly, a more in-depth analysis on the characteristic, inducement and deficiency of present prevention system for fraud applications. Follow by, suggestions on setting up of risk prevention management linkage between departments.Lastly, summary from the research and proposal on a more efficient risk management system.