Malicious overdraft: For the purpose of obtaining funds, exceeding the overdraft limit or deliberately failing to repay on time. Credit card fraud: refers to the act of using credit cards to commit financial fraud. Fraud often takes the following forms. 1. Pretend to use a lost card or a stolen card. Once a card is lost or stolen, fraudsters use it to obtain goods, services or cash. Preventive measures can only be taken after the loss or theft has been reported. So typically the most fraudulent activity occurs when a card has just been lost or stolen. 2. Intercept credit cards. The card was intercepted in the mail and subsequently used fraudulently. Cards may be intercepted at different stages during the mailing process. These stages are usually: the distribution center of the card issuer, the bulk transportation process of the carrier, the mail sorting system, and the location of the cardholder. The average loss for these types of fraud is generally higher than for a lost or stolen card because the card is intercepted unsigned and the fraudster can freely sign the card and use his or her own signature on the transaction receipt. 3. Abuse the account. The account number is used by someone other than the actual cardholder to obtain goods, services, or cash. This type of fraud usually occurs in transactions where a card is not required, such as mail or telephone orders and online purchases. This type is common among fake franchisees. 4. Counterfeit cards. Counterfeit card fraud uses cards that imitate account data from real cards, but these cards are not produced by the card issuer or authorized card manufacturer. There are generally four types of counterfeit cards: fully remanufactured, altered/reembossed, recoded, and white. 5. Application by false cardholder. Refers to using false information to apply for a credit card. Reasons 1. China’s credit system is imperfect. The construction of China's credit system is still in its infancy, especially the construction of the personal credit system is a weak link. Personal credit data is relatively scattered, and there is no complete sharing of personal credit data between government departments and even banks. Due to the limitations of the customer credit data they have, commercial banks' credit assessment of target customers cannot accurately reflect the credit rating of target customers, which makes the first barrier to prevent credit card risks ineffective. 2. Online payment contains risks. The proliferation of e-commerce in recent years and the rapid growth of online transactions cannot conceal the fact that e-commerce still has many potential loopholes. Moreover, as the network "grows up", these early technical "defects" and "vulnerabilities" are becoming more and more serious. Quickly evolve into a deadly black hole. 3. Commercial banks issue too many cards. In order to compete for the highly profitable market of credit cards, China's commercial banks have established their own credit card systems except for a few banks that have not yet issued credit cards, resulting in a near-proliferation of credit card issuance. There are many banks that focus less on quality than on quality and have lowered their review of credit card user conditions. The end result is that credit card users are not very valuable, especially in high-end customers and product segments. At the same time, strict credit card management measures have not kept up and the internal control system is imperfect, which will inevitably give criminals opportunities to take advantage of, and credit card fraud continues to occur.