Credit and debit card fraud rose by a
fifth to £504.8m last year, figures published
by the payment industry body Apacs have revealed. Here's
are some tip to help keep your cards safe and protect
yourself from different types of card frauds.
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Q |
Is preventing
fraud just a case of keeping my credit and debit
cards safe? |
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A |
It does help to keep your cards safe.
A great deal of fraud arises from teams of thieves
stealing cards and then going on a spending spree
before their owners wake up to the fact that they
have been robbed.
But picking peoples' pockets is a high visibility
crime and there is a reasonable chance of being
caught.
Many fraudsters prefer to employ more sophisticated
- some would say "white collar" - techniques
to commit their crime. Top
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Q |
What should I be on the
lookout for? |
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A |
In short, be very alert any time that someone
wants to take your card out of your sight. During
recent years, the major way that fraud has been
carried out has been by card "skimming".
Skimming is a process whereby the data from
a card's magnetic strip is electronically copied
onto another card. This fraud is often
carried out in restaurants, shops and petrol stations
- you hand over your card and a replica card is
produced and used, sometimes on the other side
of the world. Skimming UK cards nets fraudsters
more than £100m a year. Fraud carried
out when cards are not present - over the phone,
mail order and via the internet - is also still
common, accounting for £150.8m a year. Top
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Q |
What steps can I take now
to stop myself falling victim? |
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A |
Cardwatch
set up by Association for Payment Clearing Services
(Apacs) to increase awareness of card fraud, calls
on people to be vigilant. They advise consumers
never to let cards out of sight and to check receipts
and bank statement thoroughly.
What is more, they advise consumers to go to
the drastic step of shredding all their card receipts.
Disturbingly, a card receipt is all a clever fraudster
needs to reproduce a replica card.
You are at most at risk when the fraudster can
easily guess your card Pin number. Avoid using
easily traceable facts about you - such as your
date of birth - as your Pin number.
In addition, have a different Pin for every card.
It may be a pain to remember all the numbers,
but it will make the job of the fraudster very
difficult indeed. Top
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Q |
What about protecting myself
while using a cash machine? |
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A |
The advice from security experts
is clear. If you suspect that the cash machine
you are about to use has been tampered in any
way then walk away and report your suspicions
to the bank or machine operator.
Common cash machine fraud includes using skimming
devices, which copy card details, and miniature
camera devices, which record cardholders' Pins.
Often fraudsters hover around cash machines, spying
on users in a bid to capture their PIN numbers.
In response consumers are advised to cover the
hand they are using to enter their Pin.
Top
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Q |
What happens if I do fall
victim to credit or debit card fraud? |
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A |
The law states that cardholders
are not liable for fraudulent transactions as
long as the original card is still in their possession.
Any bank or business turning down a refund
request is on very shaky legal ground. The problems
arise when a card is stolen or lost and is then
used fraudulently.
Under these circumstances according to the terms
of the Consumer Credit Act and the Banking Code
you are liable for damages up to a maximum of
£50. However, an Apacs spokesperson said
that banks often waive the £50. Top
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Q |
What are the banks doing
about it? |
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A |
UK banks say that they are making
great strides in confronting the fraudsters. After
extensive trials last year UK banks are introducing
Chip and Pin technology. Chip and pin
cards aim to cut fraud by including a smart chip,
which can store more information than the usual
magnetic strips, and also by having users verify
transactions by keying in a pin number rather
than signing a receipt. Latest figures
from the Chip and Pin Programme show more than
90 million new cards have been sent out. The aim
is to switch all UK cards to Chip and Pin by the
end of 2005. A similar programme was launched
in France more than a decade ago and card fraud
fell by almost 50%. Top
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Q |
Why is card fraud still
rising? |
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A |
Apacs has suggested that the surge in fraud is
more short term. Chip and Pin is going to make
life a lot harder for the fraudsters and they
have stepped up their activities to exploit the
weaknesses of the current system. However,
it is unlikely to be eradicated completely. Apacs
revealed in June that fraud following cards being
lost or stolen in the post had risen by more than
a half in the past year. Many of these
cards were Chip and Pin and were stolen along
with their Pin numbers. Top
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