Fraud can be defined as the intentional perversion of truth to induce another to part with something of value or to surrender a legal right. In the business community, the ultimate goal of fraud is to gain money. There are numerous fraud scenarios within the business world and, unfortunately, many have transitioned into the internet community. Focus on the following questions to learn more about your organization’s management and monitoring of credit card fraud risk.
Sample questions include: Who is directly responsible for monitoring fraud? Does the organization research the transaction histories of its customers in order to formulate a profile of the typical transaction? Does the organization track and analyze fraudulent transactions? Does the organization have specific procedures for escalating and dealing with instances of fraud? How much fraud risk can the company manage and still remain profitable? How many orders can the company afford to manually review?