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# How much did credit-card fraud cost United States banks in year X to

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Re: How much did credit-card fraud cost United States banks in year X to [#permalink]
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it is very informative. Hope this helps.

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Re: How much did credit-card fraud cost United States banks in year X to [#permalink]
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carcass wrote:
How much did credit-card fraud cost United States banks in year X to the nearest \$ 10 million?

(1) In year X, counterfeit cards and telephone and mail-order fraud accounted for 39 percent of the total amount that card fraud cost the banks.

(2) In year X, stolen cards accounted for \$ 158.4 million, or 16 percent, of the total amount that credit-card fraud cost the banks.

(1) Counterfeit cards + telephone + mail-order fraud = 39% of Total amount of fraud. No information of either Counterfeit cards + telephone + mail-order fraud or total fraud cost is given; Insufficient.

(2) Stolen cards' cost 158.4 million which is 16% of total fraud cost. So can calculate 100% of fraud cost. Sufficient.

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Re: How much did credit-card fraud cost United States banks in year X to [#permalink]
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carcass wrote:
How much did credit-card fraud cost United States banks in year X to the nearest \$ 10 million?

(1) In year X, counterfeit cards and telephone and mail-order fraud accounted for 39 percent of the total amount that card fraud cost the banks.

(2) In year X, stolen cards accounted for \$ 158.4 million, or 16 percent, of the total amount that credit-card fraud cost the banks.

Solution:

Statement One Alone:

We know the combined percent of counterfeit cards, and telephone and mail-order frauds; however, we don’t know the combined dollar amount of these two types of frauds. For instance, if the combined dollar amount of counterfeit cards and telephone and mail-order fraud was \$3.9 million, then the credit card fraud cost US banks \$10 million in year X. However, if the combined dollar amount of counterfeit cards and telephone and mail-order fraud was \$39 million, then the credit card fraud cost US banks \$100 million in year X. Statement one alone is not sufficient.

Statement Two Alone:

We know both the dollar amount and percent of stolen cards in year X. To determine how much credit card fraud cost US banks in year X, we can simply divide \$158.4 million by 0.16. Statement two alone is sufficient.

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Re: How much did credit-card fraud cost United States banks in year X to [#permalink]
financestudent wrote:
Hi carcass

What does this phrase mean below?

"to the nearest \$ 10 million"

carcass wrote:
How much did credit-card fraud cost United States banks in year X to the nearest \$ 10 million?

(1) In year X, counterfeit cards and telephone and mail-order fraud accounted for 39 percent of the total amount that card fraud cost the banks.

(2) In year X, stolen cards accounted for \$ 158.4 million, or 16 percent, of the total amount that credit-card fraud cost the banks.

­Approximate to the nearest \$ 10 million.
Re: How much did credit-card fraud cost United States banks in year X to [#permalink]
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