What is Fraud?

Fraud is a deception deliberately practiced with the motive of securing unfair or unlawful gain. Specific to our topic here, fraud can be an attempt to cheat the Federal Government and corrupt its agents by using GSA SmartPay payment solutions for transactions not part of official government business. Like any deception, fraud has its fair share of victims.

GSA is posting this information to help you, your agency, and the Federal Government avoid being victimized. Fraud can come in many disguises, such as false emails, mail, or phone calls. Likewise, intentional misuse of a GSA SmartPay payment solution by the account holder can result in fraud. In addition, non-account holder fraud involves the use of the payment solution or account holder information by an unauthorized person.

As a GSA SmartPay cardholder, you should be aware and take necessary steps to protect your account and yourself.

Different Types of Fraud

Some of the different types of fraud include:

  • Counterfeit Accounts — To make fake cards, criminals use the newest technology to “skim” information contained on magnetic stripes of cards, and also to pass security features (such as holograms).
  • Lost or Stolen Accounts — Often physical cards are stolen from a workplace, gym or unattended vehicle.
  • Card Not Present (CNP) Fraud — Internet fraud occurs whenever account information is stolen and used to make online purchases. Usually, a merchant will ask for the CVC code (located on the back of the card itself) to help prevent this type of fraud.
  • Phishing — Phishing occurs whenever an account holder receives a fake email directing him or her to enter sensitive personal information on a phony website. The false website enables the criminal to steal information from the account holder.
  • Non-Receipt Fraud — This occurs whenever new or replacement cards are mailed and then stolen while in transit.
  • Identity Theft Fraud — Whenever a criminal applies for an account using another person’s identity and information