Credit Card Fraud Risk Legal Research

During national and international trade, Letters of Credit(or L/C) ,which the traders regard as "the Blood of International Business","the Creation of the Genius alike",comprise their inherent risk because of their underlying defects and particularities. Not only does the risk of Letters of Credit decrease, but also it has been increasing rapidly. More and more fraud on Letters of Credit happens frequently and extensively, sometimes even over millions of dollars, for instance, New York Branch, Bank of China breach of regulation; MuQizhong Letters of Credit fraud case etc. With the entrance to WTO, and carrying out national-treatment and most-favored policy, China's trade about import and export surely jumps to a new stage. Then Letters of Credit will be adopted exclusively. Letters of Credit risk's defense not only relates to the banks and corporations, but also connects with a country's financial risk and financial danger. Therefore, It's important and necessary to predict,control and defend the risk of fraud on Letters of Credit.In order to maintain national and international trade in ordinary condition, keep legally proper Letters of Credit owners and protect the efficiency of Letters of Credit, It's essential to implore the basic principle and legal characteristics of Letters of Credit, and conclude the previous better resolutions about the defense of risk of fraud on Letters of Credit, some reasonable suggestion should be given to banks and enterprises and law field. Especially to the developing countries, such as one of the mainly deceived countries-- China, more stresses and attention should be taken into the defense of fraud on L/C. The thesis alternatively applies comparison methods, basic cases to analyze, which emphasizes the defense with law and other general means. The thesis is provided with novelty in the choice of the title, research methods and angles, which mainly focuses on the risk of fraud on L/C and their protection. The preface adopts a series of the famous fraud on L/C cases and data to show the underlying risk of fraud on L/C. Then it points out their emergency, and the importance and necessity of control and defense of fraud on L/C. Only in this way could the banks and enterprises keep developing smoothly with less or no vicious capital and assets.Part One mainly introduces the basic rule of L/C, and their fundamentally legal system, including the ICC URC 522,UCP 500(1993 revision), their content and classifications of L/C. Because of the credit of banks joining, the commercial dealings and merchants' confidence could be improved steadily. Part Two analyzes the legal rule and characteristics of L/C, L/C inherently lies in enormous fraud risk except their efficiency, thereby, it's vital to explore the L/C, the legal relationship of L/C's participants and their rights and responsibilities. About the legal characteristics of L/C, different law scholars explain with various legal theories, but all of their conclusions seem to have defects. Among them, there are two main theories that are the general contract theory and mercantile specialties. Nowadays L/C is considered as an international convention with the efficacy of contractual law, the thesis predicts L/C will be taken into national law system and then show the efficacy with enforcement. Part Three introduces the defensive means to the fraud risk on L/C. Firstly, the thesis compares defense methods in USA, England, etc. Then it shows Chinese experience and jurisprudent practice about defense measures to the fraud risk on L/C. In western countries, both the courts and judges are unwilling to apply" L/C Injunctions" aimlessly, and their purpose is not to intervene in the function or efficacy of L/C. But in China, because of various reasons, the" L/C Injunction" is abused ,which results in the credit ,image and fame decreased and damaged for Chinese banks,corporations and even our country. Part Four mainly researches how to defend and control the fraud riskof L/C. Because L/C has such...