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The Credit Card companies could stop fraud tomorrow if they wanted to, the truth is they earn out of it and have no incentive to stop it.
When purchasing with my Czech Charge cards, I have to punch in my PIN number on a direct link to the CC company, it's an extension of the swipe machine. Therefore only I can use my Czech Credit cards.
When my wallet was stolen from the studio, the only cards that were charged were the US and UK ones.
This system was introduced by the Czech banks to ensure no CC fraud. It works, fraud levels were ridiculous before this system.
It does not have to be your PIN, but a 2-4 digit code that verifies you are the user of the card. Then a chargeback is only allowed within a certain period or receiving the product. A lot of the auction charge backs are due to the goods not being as advertised.
The problem is that only 1/3 of fraudulent charges are reported. The CC company earns every time a fraudulent charge is made, they earn again when it is charged back. Therefore no incentive to reduce it. What ever the industry, auctions to adult.
Can you imagine the CEO facing his annual shareholders meeting and saying ?I have reduced fraud to 10% of it's previous level and by doing so has reduced our profits by 5%?. *These figures are examples*
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