Project on

A STUDY

ON FRAUDS IN PLASTIC MONEY

Masters of Commerce (Banking and Finance) Semester I 2012-2013

Submitted

In partial fulfillment of the requirements for the award of the degree of master of commerce-banking and finance.

By: Chitra Salian (235)

MODEL COLLEGE, DOMBIVLI (EAST). MUMBAI UNIVERSITY

DECLARATION BY THE STUDENT

I, Chitra Salian student of M.Com. Part-I Banking & Finance, Roll No. 235 hereby declare that the project for the Paper commercial banking titled, A Study On Frauds in Plastic money submitted by me to University of Mumbai, Semester I examination during the academic year 2012-2013, is based on actual work carried by me under the guidance and supervision of Prof. Neha Gaikwad .

I further state that this work is original and not submitted anywhere else for any examination.

(Signature of student)

ACKNOWLEDGEMENT

At the beginning, I would like to thank GOD for his shower of blessing. The desire of completing this project was given by my guide Prof. Neha Gaikwad . I am very much thankful to her / him for the guidance, support and for sparing her / his precious time from a busy schedule.

I would fail in my duty if I dont thank my parents who are pillars of my life. Finally I would express my gratitude to all those who directly and indirectly helped me in completing this project.

(Signature of the student)

EXECUTIVE SUMMMARY

Man has progressed from barter system to paper currencies and now to plastic money. Plastic money offer you the convenience, safety , more purchasing power and host of fringe benefits .most card offer benefits like discount coupon and invitation to exclusive events. But it is not with out its faults. Not only do we tend to spend recklessly at times but also lands ourselves in trouble by going over the credit limits and not being able to pay back in time. However this is something which we can ourselves control. There is an even larger but unnoticeable threat to the sanctity of our plastic money There are a whole lot of fraudulent hackers and other criminals out there to take advantage and misuse our plastic cards for their own benefits. A little caution from our end ensures that the cards are not misused Consumers should also be educated on proper usage of the cards and measures they should undertake in ensuring the safety and protection of plastic cards . In India ,the growth of plastic money has been explosive. With the recent announcement by various credit card companies to offer free credit card , there will be boon a boom in the market .more plastic money in the market means more is the opportunities for the criminal to misuse them. Plastic money if used prudently and judiciously will be a boon for the consumers. The requirement here is that the cards do not fall into wrong hands and expose ourselves to its dangerous consequences.

Chapter No. 1.

TOPICS INTRODUCTION PLASTIC MONEY CREDIT CARD TO

PAGE NO 9

2.

13

3.

PROCESS CARD

OF

DEBIT 27

4.

INTRODUCTION PLASTIC FRAUD

TO 28

5.

TYPES FRAUDS

OF

PLASTIC 29

6.

PREVENTION AGAINST 38 PLASTIC FRAUDS FRAUD AND 47 PREVENTION MANAGEMENT FRAUD PREVENTION 48 AND TECHNOLOGY RECENT DEVELOPMENT 51 IN FRAUD MANAGEMENT RBI GUIDELINE ON 56 PLASTIC FRAUDS SCAMS ANALYSIS REPORT OF 58 SURVEY 59

7.

8. 9. 10. 11. 12.

13.

CONCLUSION

66

14.

WEBLIOGRAPHY AND BIBLIOGRAPHY

67

Design of Study

The main objective to choose this topic This is very practical and interesting topic This topic gives knowledge on different types of plastic fraud and prevention on the same Also topic gives knowledge on different types of cards and their usage and drawback

Scope of Study The Indian scenario has been presented The benefits and drawback from cardholders perspective has been stated The primary research that is the survey conducted has been concentrated only to banks.