The victim may continue to be affected due to the slow removal of the charges from their credit report. Although preventive measures could be implemented that would place a cap on the initial instant credit limit and obtain supporting documentation from the applicant during the application process, these have gone by the wayside and left room for the professional criminal to victimize the creditors. All sales personnel are at the forefront of this fight and they have the tools to reduce credit card fraud from its inception. The sales personnel should be adequately trained to identify a bogus driver's license, or other official forms of identification used when applying for instant credit. While many fraudulent purchases can be detected and stopped by retail personnel, unfortunate statistics reflect that employee collusion is involved in over half of all retail credit card frauds.
Internal controls are important as they provide restrictions to detect fraud.
However, if not monitored properly, breaches may open doors to fraudulent activities. These can be blamed on lack of proper supervision, too much trust in one employee, inadequate training, weak links in chain of controls, tendency for organizations to crisis manage and no numeric control. Estimates by the Association of Certified Fraud Examiners, revealed that organizations lose 6 percent of their annual revenue to fraud and abuse. Companies must educate themselves to have a better understanding of the factors involved in these crimes. Fraud is a tumor that continually grows with trust and greed, if it is not identified it can consume the existence of a company.