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Business Operations & Operating Results

Fraud Prevention Operation

Index Business Operations & Operating Results Fraud Prevention Operation

Fraud Prevention Operation

To monitor credit card frauds in retail transactions, NCCC has utilized prevention system with parameters preset and reporting mechanism as a monitoring tool to identify any abnormal activities and proceed with investigations. For those merchants who are verified violating merchant contract, NCCC will take actions of educating, or warning, or monitoring, or terminating merchant contract depending upon the violation extent. Also, NCCC, as the credit card fraud reporting center, provides a fraud transaction information reporting platform that consolidates information from credit card institutions and international associations and shares the information with each other to prevent exposure to fraud; thus, establishing an effectively risk controlled credit card transaction environment in Taiwan.

《Business Scope》
For NCCC merchants, NCCC implements effective monitoring and management system, consolidates and sends analytic fraud information to the credit card institutions, which helps creating a more secure credit card transaction environment in Taiwan.

《Operating Results in 2016》
(1). Number of risk merchants investigated: 304 merchants investigated in 2016, dropped 21 from 325 merchants in 2015.

(2). Number of risk merchants on monitor list: 142 merchants on monitor list in 2016, dropped 44 from 186 merchants in 2015.

(3). Number of risk merchants cancelled: 60 merchants cancelled in 2016, dropped 20 from 80 merchants in 2015.

(4). Number of cards confiscated by merchants: 578 cards confiscated by merchants in 2016, dropped 63 from 641 cards in 2015.


NCCC Member Institutions’ Card Issuing Fraud Types - % shares



Remarks:
i. Lost: Card lost and found used fraudulently ii. Stolen: Card stolen and used fraudulently iii. Card not received: New/Renewed Card intercepted during mail and used fraudulently iv. Fraudulent application: Card applied and used fraudulently without authorization by the genuine cardholder v. Counterfeit: Card counterfeited and used fraudulently vi. MOTO/EC: Non-face-to-face transaction made without authorization by the genuine cardholder vii. Imprinting of Multiple Sales Drafts: Merchant falsely uses cardholder’s data such as card number and forges transactions. viii. Others: Other types of fraud not listed above