Study Of Credit Card Fraud Legal Issues

Among the various means of payment of international trade, letters of credit are the most important However, due to the inherent defects of the system of letters of credit and some other causes such as the parties subjective reasons and some technical ones fraud happens constantly, which makes the international merchants become doubting about the safety of the system and as a result, the development of international trade has been affected. With China's entering into the WTO and the development of foreign trade, China has become one of the worst influenced states by fraud in letters of credit transactions. It has been reported that the loss of our exports exceeds 10billion US dollars and 60 percent of it was because of fraud. The money advanced by banks for the buyers of the letters of credit transactions in China every year amounts to billions. It is estimated that loss suffered by the sellers from deceptive L/C transactions in mainland China amounts to an astronomy number. As a result, studies on how to prevent L/C fraud are quite important theoretically and urgent in practice either for the international society or for China.This article addresses the relative legal issues about L/C fraud from the perspective of combining theory with practice with the methodology of comparative, rule, pragmatic, history and logic analysis. The whole article is divided by four parts: Part I outlines some basic problems about the L/C transactions, such as the definition of L/C, the characteristics of them, the parties of the transactions and the process of payment, and points out that one should understand the meaning of the L/C from the aspects of the nature, the opening and the payment of the L/C. Part II analyzes the L/C fraud through the legal defining of the L/C fraud and the causes and types of it This part suggests mat although there has not been an exact definition of the L/C fraud, the meaning of it can be drawn from the subject and the scope of fraud, the subjective fault of the party and how to define material fraud. This part stresses on the level of system mainly while gives a brief discussion about the subjective and technical levels. Beside, it classifies the L/C fraud based on the varied subjects of the fraud. Part III explores the relating problems about the fraud exception principle of L/C transactions. First, it introduces the establishment and the characteristics of the principle. Second, it explains the...