Research On Credit Card Fraud Risk Management Of ZY Bank

With the promotion of consumption upgrading and industrial restructuring by the State,the consumer finance market is booming,and commercial banks have actively developed the credit card business,which has become a market with huge development potential with 790 million cards currently issued.With the change of consumption concept,more and more people use credit card,which brings a huge customer scale to the issuing bank.But the rapid development has also brought new challenges.With the rapid development of the payment market,various financial institutions are facing more and more severe risks,among which fraud risk is the most common one.With the commercial banks’ card issuing mode changing from offline to online,and the network payment has replaced the traditional cash payment,the bank faces the increasingly serious fraud risk.Therefore,it is urgent to effectively manage the risk of credit card fraud.Taking ZY Bank as the main research object,this paper studies the management of fraud risk of its credit card business.Firstly,this paper introduces the background and significance of the study,and collates the domestic and foreign scholars’ research on credit card fraud risk management,which provides some reference for this study.At the same time,the characteristics of credit card fraud and fraud are analyzed,including asymmetric information theory,principal-agent theory,credit fragility theory and moderation management theory,which lays a sufficient theoretical foundation for this study.Then,it analyzes the development of the current credit card business from the business profile of ZY Bank,and analyzes the main fraud risks and management status of the bank.Through investigation and analysis,this paper finds out the problems of fraud risk management in ZY Bank’s credit card business,including weak risk internal control,the poor ability to identify fraud in the approval link,the inadequate monitoring of the transaction monitoring link and the incomplete compensation mechanism for fraud losses,and finds out the specific reasons for these problems.Finally,according to the current situation of ZY Bank,this paper puts forward some countermeasures to strengthen the risk management of credit card fraud,including improving the risk management of marketing link,enhancing the rigor of credit card approval,enhancing the ability of monitoring transaction fraud and strengthening the management of fraud loss risk compensation mechanism.This paper is innovative in research subject,hoping to provide some reference for other banks,especially urban commercial banks.