| Avoiding Credit Card Fraud | | | | countering this type of fraud lies in the fact that neither |
| The huge boom in credit card options and availability | | | | the card nor the cardholder is present at a till point in a |
| has resulted in an equally large boom in credit card | | | | shop. CNP fraud is now the largest type of fraud in |
| fraud. An estimated £500 Million was lost to | | | | the UK. The only way to reduce your chances of |
| fraudsters last year, and that figure looks set to climb | | | | being caught by this scam, is to be very cautious |
| even further. | | | | about who you give your details to. Sticking to |
| How to protect your cards | | | | reputable websites/mail order companies is probably |
| The first step is to make sure your credit cards are | | | | the easiest measure you can take. |
| kept in a safe place, both at home and whilst you are | | | | Shoulder Surfing |
| out and about. A sizable percentage of the credit card | | | | Despite sounding like a new extreme sport, shoulder |
| fraud mentioned above occurs when cards are stolen | | | | surfing actually refers to one of the simplest methods |
| by pickpockets (who often work in teams). The | | | | of fraud. Thieves will peek over your shoulder as you |
| thieves then go on a spending spree, often before the | | | | use a cash machine (or Chip and PIN keypad), |
| rightful owner even realises the card is missing. To | | | | remember your PIN number and then steal your card |
| avoid or reduce the risk of this you can employ a | | | | at a later time. Usually by means of a pickpocket, but |
| couple of simple techniques. Firstly, always try to keep | | | | cases where the cardholder has been followed home |
| your wallet/purse in a zipped or buttoned inside pocket. | | | | and then burgled are not uncommon. Always shield the |
| If no inside pocket is available, the front trouser pocket | | | | keypad when inputting your PIN and be aware of the |
| can be used. Avoid patting your pockets to check if | | | | person behind you. More sophisticated methods of this |
| you wallet is there, this can alert a watching thief of its | | | | fraud can involve tiny cameras and skimming |
| location. Finally, don't walk around in a daze! Be aware | | | | machines inserted into the card slot at a cashpoint. |
| of people around you, especially in crowded areas. | | | | Rummaging Through Your Rubbish |
| It doesn't stop there | | | | As unsavoury as this might sound to you or us, thieves |
| Pickpockets are certainly a problem, but you are more | | | | are actively searching through peoples rubbish to find a |
| likely to fall foul of more sophisticated fraud methods. | | | | whole host of useful information. An amazing number |
| Skimming | | | | of people simply throw their credit card receipts and |
| Any time your card leaves your sight (in restaurants, | | | | back statements in the bin and leave it out on the side |
| shops, etc) you are open to fraud. Skimming is a | | | | of the road. This has become a open invitation to |
| method that involves a member of staff in a | | | | fraudsters (as reported by the BBC here). |
| restaurant or shop. When you hand over your card, | | | | Always shred any documents relating to your finances |
| the crooked staff member takes it and passes it | | | | before throwing them away. It only takes 1 credit card |
| through a small device called a skimmer. This stores | | | | receipt for a clever fraudster to be able to duplicate |
| the information on the card and allows it to be | | | | your credit card! |
| duplicated. They will then charge your card the cost of | | | | Mail Theft |
| your meal/purchase and hand it back, with you being | | | | As reported in 2005, the amount of mail being stolen |
| none the wiser. | | | | by organised gangs is on the increase. By having a |
| Our advice here is to NEVER let your card leave your | | | | members working in sorting offices, these gangs are |
| sight. It only takes a few seconds to skim a card, so | | | | able to intercept new cards being sent out as well as |
| even this amount of time is too long. Chip and Pin | | | | the PIN numbers, which follow in separate letters. |
| cards are making this method of fraud less prevalent, | | | | Experts believe this increase is due to the added |
| but it is still costing millions each year. | | | | security Chip and PIN cards offer against skimming, |
| Phishing | | | | etc. |
| This method is on the increase, mainly due to the | | | | A Bit of Good News... |
| massive surge in online spending. Thieves send you an | | | | UK law states that cardholders are not liable for |
| email that appears to be from your bank or Internet | | | | fraudulent purchases made on their card as long as it |
| service provider or retail website (Ebay, Amazon, etc) | | | | remains in your possession. In cases where your card |
| linking you to a fake website which asks that you | | | | has been stolen (or lost) and used fraudulently, the |
| verify personal information or input your password. | | | | Consumer Credit Act states that you will be liable to |
| The request is often backed up with threats that your | | | | pay up to £50 damages. |
| account will be terminated within days of you do not | | | | What is Chip and PIN? |
| reply. Don't respond in any way; financial service | | | | Chip and PIN cards are helping to combat fraud by |
| companies, banks and Internet service providers and | | | | adding two new security measures to the common |
| reputable online stores NEVER ask you for information | | | | credit card. The Chip part of the card is a microchip |
| in this manner. | | | | which stores your information much more securely |
| Card-not-present (CNP) fraud | | | | than the old magnetic strip. This makes it much harder |
| This includes fraud conducted over the Internet, by | | | | to counterfeit. The PIN part is the addition of a unique |
| telephone, fax and mail order. It is perpetrated when | | | | 4-digit number you will need to enter before your card |
| criminals obtain card details through the theft of your | | | | is accepted. Whilst these security measures are by no |
| card details from discarded receipts or by copying | | | | means fail-safe, they do reduce the chances of fraud |
| down your details during a transaction. The problem in | | | | considerably. |