Center for Problem-Oriented Policing

POP Center Home Problems Check and Card Fraud 2nd Ed Summary

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Summary of Responses to Check and Card Fraud 

The table below summarizes the responses to check and card fraud, the mechanism by which they are intended to work, the conditions under which they ought to work best, and some factors you should consider before implementing a particular response. It is critical that you tailor responses to local circumstances, and that you can justify each response based on reliable analysis. In most cases, an effective strategy will involve implementing several different responses. Law enforcement responses alone are seldom effective in reducing or solving the problem.

Response No.ResponseHow It WorksWorks Best If…Considerations
Working With Businesses
1Raising responsibility awarenessLocal businesses and card issuers are encouraged to take more responsibility for preventing fraud…police emphasize the community costs of fraud to merchantsMany security, card-issuing, and verification policies are dictated by national and international card issuers, bankers, and retail chains, making it difficult to change local practices
2Increasing the reporting of fraudData collection allows police to determine the extent of the problem in their area…it is combined with a preventive program (see response #3)The media may portray increased reporting of incidents as a “crime wave” demanding a police crackdown, rather than an aid to planned preventive procedures
3Verifying checks, cards, and usersRetailers with high check or card fraud losses are targeted, and verification procedures are established…verification procedures are integrated into the established checkout practices, and an evaluation demonstrates cost- effectivenessMerchants may resist spending money on verification, especially if it requires investing in new technology and changing checkout procedures
4Training checkout staffRegular staff training raises awareness about fraud prevention…police establish a close, trusting relationship with businesses and clearly communicate goalsMerchants may distrust police attempts to participate in staff training sessions
5Reducing card application fraudVacant residences and newly occupied residences where credit card information may be sent are identified…police work closely with postal employees and real estate agencies to ensure that mail is not delivered to unoccupied residences, and is forwarded to the appropriate peopleVacant residences may be in several different mail- delivery areas, requiring extensive coordination with the post office
6Using information to fight online card fraudSpecified websites alert users to online fraud…police provide prevention and enforcement information to small local businessesIt is difficult to evaluate this response’s effect on online fraud, since it is primarily directed at enhancing police-business relations; generally, preventing online fraud is beyond the means of local police
7Tracking productsPolice work with delivery companies, local retailers, and Neighborhood Watch to monitor product delivery and product returns…manufacturers, retailers, and delivery companies use new tracking technologyCost-effectiveness may be difficult to determine; tracking may work in reducing related crimes such as shoplifting and theft of items in transit
8Raising perceptions of wrongdoing and riskRetailers post warning signs at checkouts…retailers keep records of check and card fraud both before and after posting signs, to measure their effectivenessMerchants may resist this response, inexpensive though it is, for fear that it will have a negative effect on law-abiding customers
Community Partnerships
9Educating cardholdersEducational programs teach people to avoid victimization by taking simple precautions…it is combined with crime prevention education about a variety of crimes for which they may be targetedThis response requires considerable cooperation from community groups and schools
10Publicizing costs of fraudThe media are used to publicize the financial and human costs of fraud…police work with businesses and the media to craft stories that emphasize crime preventionStories of victimization may affect businesses negatively; media treatment of stories and information may be unpredictable; effectiveness is probably not measurable
11Collaborating with collegesPolice encourage colleges to establish responsible-use policies for computing facilities, to minimize hacking…it is combined with crime prevention education about a variety of crimes for which they may be targetedEffectiveness is difficult to measure, and depends on colleges’ willingness to invite local police to their campuses to help solve crime problems
Enforcement
12Monitoring fencing outlets, pawnshops, and online auctionsPolice work with businesses to develop strategies to track goods that may be stolen…police acquire extensive local and regional knowledge of known fencing and pawnshop operationsLocal businesses must cooperate in identifying and tracking goods
13Monitoring chat rooms, bulletin boards, and bogus websitesPolice conduct surveillance of crime-facilitating Internet venues…police get help from ISPs and computer crime expertsIt is difficult to determine whether online fraudsters live in your area
14Targeting high- risk merchantsPolice determine what stores have high rates of fraud and focus their efforts on them…police work with business associations to collect information if incident data are not availableInformation-sharing requires a long-term, trusting relationship between police and businesses
15Getting help from expertsExperts on fraud provide information and skills that may help with local problems…police network with professional security consultants and fraud squads at the local, regional, and national levelFraud squads may be investigation- rather than problem-oriented
Responses With Limited Effectiveness
16Conducting crackdownsPolice conduct very public, intensive campaigns to catch fraudsters Merchants may fear that crackdowns will drive business away
17Implementing business watchBusinesses set up programs similar to Neighborhood Watch…programs are focused on specific crimes, rather than crime in generalBusinesses must have clear crime-prevention goals
18Handling offenders through means other than the criminal justice systemPolice and/or businesses issue offenders warnings, require victim compensation, and/or require counseling rather than make formal criminal reports This response has usually been used with juveniles who have committed other offenses; it has not been evaluated for check and card fraud
19Conducting publicity campaignsPolice alone publicize fraud risks…it is combined with the implementation of practical security measuresResearch has not shown this response, alone, to be effective

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