The best way to stop credit card fraud is to make photo card mandatory while using the card at stores. If the photo is not there then merchant needs to ask the holder to give a id proof which matches with the name. In that way atleast shopkeeper wont sell to any unauthorize person
while doing online transactions one should make a check that billing address and ship to address is same and matches with the address that is present within the bank records. If both are different then separate check should be made which would validate the transaction. finally fraudster will buy some stuff and get it shipped some where and it can be traced.
another way is to generate virtual number and use that number while doing online transaction.citibank has that facility. it even generates the new cvv which is valid only for a short period .... icici asks for card digit like which is the 10th and 14th number of the card and we have to enter that again as additional check. visa even allows you to register so that password is asked when ever transaction is made..
banks should send sms if there is any transaction done over the set limit via sms or email so that cc holder can immediately get aware of wrong happening. https is a must in url when entering credit card number..one shouldnt purchase from unknown sites as they might stole the information.
