| We all worry about falling victim to credit card fraud, | | | | new fraud prevention system, a system that would |
| and this has become an even greater worry over | | | | automatically check every single transaction that was |
| recent years because of sophisticated new scams | | | | made with a HSBC credit card to check if it was |
| used by fraudsters as well as because of the rise in | | | | fraudulent or not. |
| credit card fraud. With the global credit crisis still | | | | The software would check for the likelihood of the |
| causing issues, and with the recession underway, | | | | transaction being fraud by comparing it against the |
| credit card fraud is rocketing, and officials have said | | | | normal patterns of use of the cardholder. |
| that it could be set to get much worse. | | | | HSBC even said in the media regarding the launch of |
| The rise in credit card fraud deals a double blow for | | | | it's new fraud detection system that chip and PIN had |
| victims, as not only do they find themselves on the | | | | only really worked for 18 months, until the fraudsters |
| receiving end of this type of activity, but they may | | | | found a way to bypass it. |
| even find that their banks are unwilling to assist them. | | | | New data sharing between credit card companies |
| This is because an increasing number of banks are | | | | could also be used in the future help to reduce fraud. |
| now refusing to compensate victims of credit card | | | | If you are worried about fraud make sure you follow |
| fraud amidst concerns about the rising level of this sort | | | | these simple 7 rules: |
| of activity. | | | | 1. Always hide and cover your PIN number entry when |
| According to reports an increasing number of banks | | | | paying at check outs or using cash machines. |
| are now refusing to compensate victims of this type | | | | 2. Never write your PIN number down on a piece of |
| of fraud, and this has made it even more important for | | | | paper or electronically on your mobile phone or |
| consumers to ensure that they protect themselves | | | | computer. |
| against this type of fraud. | | | | 3. Watch out for unusual activity at cash machines, |
| Research shows that over the past twelve months | | | | including people hanging about, or unusual devices on |
| around one in four of us have fallen victim to some | | | | or around the cash point (fraudsters often install |
| type of card fraud, which equates to around twelve | | | | cameras to watch people enter their PIN numbers). |
| million people. This reflects just how this type of fraud | | | | 4. If you shop online make sure your anti-virus |
| is rising, and goes some way towards explaining why | | | | software is running and up-to-date and your Internet |
| banks are becoming so reluctant to compensate | | | | connection is secure (for example password |
| victims. | | | | protecting any wireless network you have in your |
| Whilst chip and pin technology was supposed to help | | | | home). |
| to cut down on card fraud in the UK many officials | | | | 5. Don't give your credit or debit card or any personal |
| have said that all it has done it transferred responsibility | | | | details away in an e-mail or on instant messaging or |
| for card fraud from the banks to customers and | | | | social networking sites. Remember, banks will never |
| retailers. One industry official said: "The tactic of | | | | ask for any personal details or passwords via email. |
| rejecting refunds to victims of card fraud is hard-wired | | | | 6. If you're eating out, don't let anyone walk away with |
| into the policy of the banks. It is an ongoing scandal." | | | | your credit card, make sure they process the payment |
| However, Sandra Quinn from APACS responded: "It is | | | | at the table and if they need to go to the till make sure |
| completely wrong to say chip and PIN has transferred | | | | you go with them. Don't take your eyes off your card! |
| responsibility for card fraud from banks to customers. | | | | 7. Check your statements! Either online or when you |
| Some banks have tried to argue that if a PIN has | | | | receive them in the post. Check every item and make |
| been used then the claim will be rejected. That is | | | | sure you know you made it. If you see anything you |
| balderdash." | | | | don't recognise tell your credit card issuer as soon as |
| Recently HSBC announced that were implementing a | | | | possible. |