Visa Inc.
To: John Coghlan, Chief Executive Officer
From: ……, General Manger
Date: June 29, 2008
Subject: Fighting Fraud
Despite the great attempts we are taking to reduce the number of plastic card frauds, this issue remains one of the most vital ones and additional measures are to be considered to reduce the possibility of crimes, which hurt our clients – both merchants and regular citizens. The total number of plastic cards, already issued, is around one billion in the USA only. Such an amount is certainly not easy to control and process. Occupying around 48% of the US market, we can assume that Visa Inc. is responsible of the issue of over 480 million plastic cards[1]. This fact obliges us to take further steps, ensuring the safety of funds and information, entrusted to our hands by the customers.
The issue arises especially vividly, considering our recent access to the IPO. Acquiring over $19 billion through the public placement of the shares, we have gained even greater responsibility for our security not only in front of our customers, but the investors as well. All the further antifraud measures shall be closely monitored by the public and the results of these measures shall certainly be partly interpreted as the total success of the company. Therefore, stable antifraud measures are becoming an important variable that predetermines our financial results.
Fortunately, the antifraud measures we have already implemented, are bringing certain results. The number of frauds committed has declined in relative perspectives, though increases in absolute numbers have been determined. We are currently loosing 5 cents from each $100 processed. This is actually is around 0,05% in relative measures[ ...