Commercial Crimes » Credit Card FraudModern society is increasingly becoming a ‘cashless society’. People all over the world extensively use plastic payment cards. They form part of the tools in the daily transactions in the financial markets. Unfortunately, credit card fraudsters too have extensively penetrated these. As Malaysia develops fast into major financial and tourist centre, it increasingly becomes vulnerable to credit card fraud. In 2004, there are about 6.2 million credit cards in circulation in Malaysia, there were 204 reported cases compared to 244 cases in 2003. In terms of reported monetary losses, there’s an increase from RM721,704.58 in 2003 to approximately RM4,799,021.51. In the last few years, the banking industry in Malaysia has suffered huge losses to credit cards fraudsters because of wire-tapping devices. Fraudsters even modified digital voice recorders or MP3 players to tap telephone lines. Concerned with this skimming activity, the Commercial Crime Investigation Department (CCID) started to work closely with the Central Bank of Malaysia to compel financial institutions to issue ‘Europay, Mastercard and Visa’ (EMV) chip cards and encrypt all credit card data. Most of the banks started giving out EMV chip cards in mid-2004 as well as encryption and all the banks had complied with these instructions. By the end of 2005, all credit cards issued by banks were EMV compliant. The implementations produced very encouraging results and reduced fraudulent credit card transactions in Malaysia by 93% for the year of 2005 compared to year 2004. CCID also foresee some of the Malaysia credit card fraudsters will migrate to neighbouring countries to conduct their illegal activities. As such, it is imperative that the regional enforcement agencies and Asia Pacific police agencies should enhance existing close rapport and give mutual assistance in combating the crime.