Counterfeit Credit Cards —

Abstract

Credit-card losses from criminal activity in 1992 amounted to approximately US$1.3 billion. Over 60 percent of that loss was through the use of counterfeit credit cards and about 70 percent of the information used in credit-card fraud was illegally obtained by criminals from hotel employees. Manufacturing fake credit cards with real account numbers, as opposed to stealing cards, is the most profitable credit-card crime. Hotel employees are ideal targets for obtaining credit-card information. The following are ways management can reduce a hotel's chances of contributing to credit-card fraud. Tighten security regarding the storage and recording of hotel guests' credit-card information. Use electronic datacapture machines that enter information directly into the computer. Review security procedures and devise operational systems to discover and prevent white-collar crime.