Fraudsters target UK credit card users
Credit card fraud has hit new heights, with London being named as the credit card fraud capital of Britain for the second year running. Figures released by insurance company CPP showed that 38% of people had been victims of credit card fraud in 2008. In 12 months, almost three million people in the capital were affected " a third of all cases in Britain and a 10% jump on previous figures. The average amount stolen was 650, although some had lost considerably more. Often, victims were only made aware of the crime when they had been contacted by their bank and hadnt been aware up until that point that their details had been stolen.
These frightening statistics show how fraudsters are making life difficult for innocent people and just how easily they can get hold of personal details, pin numbers and credit card information. Once they have this information it only takes a very short time for them to steal money from an account and then disappear into the Internet. Online fraud is a growing problem with many people falling victim to emails pretending to be from legitimate sources such as the customers bank. Responding to these emails is a sure-fire way of running up a credit card bill very quickly or seeing a bank account drain of funds before your eyes.
It is actually relatively easy to take steps to protect yourself from identity theft and online fraud. No bank will ever ask a customer to disclose personal details either by email or on the phone, so you can be certain that any email asking for this information is fraudulent (known as phishing). The fundamental rule is never respond to these emails, no matter how convincing they may seem. If you are in any doubt, contact your bank directly. Online auction sites and Internet shopping has also given fraudsters a new and very direct route into peoples accounts, but again it is easy to protect yourself against scamming online. Simply check that the site is a secure one indicated by the inclusion of an s in the https section of the URL address and a small padlock icon in the bottom right hand corner of the screen. If either of these indicators is missing then the site is unsecured and so are your details.
21% of credit card fraud is the result of details being skimmed when a credit or debit card is inserted into an automatic cash dispenser or pin reader. Although these high-tech methods are becoming increasingly difficult to detect, any ATM machine or pin reader that looks suspicious (has damage around where the card is inserted, for example) should be avoided and your suspicions reported to the bank. Simply placing your hand over the keypad when typing in your pin number should shield it from prying eyes or secreted cameras.
One of the commonest mistakes people make is to have the same password for all their Internet activity. This is fine until that password becomes common knowledge to a fraudster. Avoid using obvious passwords such as pets names or birth dates as passwords " these are the first things that fraudsters will check and once they have access to your details it is easy for them to start using your credit card with impunity. The first you will know about it is a nasty shock when the next monthly bill arrives. However, by ensuring that your passwords are secure and unique you can foil the fraudsters before they take advantage of your credit card limit. These are all easily employed methods that anyone can use to beat the scammers, but what about the banks? What are they doing to ensure your details are safe?
Banks are now much more aware of the problem and have put active measures in place to ensure the safety of their customers details. They are now working much more closely with the Police fraud officers and high-tech crime units to combat this problem, but it is an uphill battle, particularly as many of the criminals involved are based abroad. A concerted effort needs to be orchestrated by all the parties involved to make any inroads into this form of criminal activity. But until such time as this happens, it is down to the individual to ensure that their details are kept as secure as possible so that Britain does not become known as the fraud capital of Europe.
These frightening statistics show how fraudsters are making life difficult for innocent people and just how easily they can get hold of personal details, pin numbers and credit card information. Once they have this information it only takes a very short time for them to steal money from an account and then disappear into the Internet. Online fraud is a growing problem with many people falling victim to emails pretending to be from legitimate sources such as the customers bank. Responding to these emails is a sure-fire way of running up a credit card bill very quickly or seeing a bank account drain of funds before your eyes.
It is actually relatively easy to take steps to protect yourself from identity theft and online fraud. No bank will ever ask a customer to disclose personal details either by email or on the phone, so you can be certain that any email asking for this information is fraudulent (known as phishing). The fundamental rule is never respond to these emails, no matter how convincing they may seem. If you are in any doubt, contact your bank directly. Online auction sites and Internet shopping has also given fraudsters a new and very direct route into peoples accounts, but again it is easy to protect yourself against scamming online. Simply check that the site is a secure one indicated by the inclusion of an s in the https section of the URL address and a small padlock icon in the bottom right hand corner of the screen. If either of these indicators is missing then the site is unsecured and so are your details.
21% of credit card fraud is the result of details being skimmed when a credit or debit card is inserted into an automatic cash dispenser or pin reader. Although these high-tech methods are becoming increasingly difficult to detect, any ATM machine or pin reader that looks suspicious (has damage around where the card is inserted, for example) should be avoided and your suspicions reported to the bank. Simply placing your hand over the keypad when typing in your pin number should shield it from prying eyes or secreted cameras.
One of the commonest mistakes people make is to have the same password for all their Internet activity. This is fine until that password becomes common knowledge to a fraudster. Avoid using obvious passwords such as pets names or birth dates as passwords " these are the first things that fraudsters will check and once they have access to your details it is easy for them to start using your credit card with impunity. The first you will know about it is a nasty shock when the next monthly bill arrives. However, by ensuring that your passwords are secure and unique you can foil the fraudsters before they take advantage of your credit card limit. These are all easily employed methods that anyone can use to beat the scammers, but what about the banks? What are they doing to ensure your details are safe?
Banks are now much more aware of the problem and have put active measures in place to ensure the safety of their customers details. They are now working much more closely with the Police fraud officers and high-tech crime units to combat this problem, but it is an uphill battle, particularly as many of the criminals involved are based abroad. A concerted effort needs to be orchestrated by all the parties involved to make any inroads into this form of criminal activity. But until such time as this happens, it is down to the individual to ensure that their details are kept as secure as possible so that Britain does not become known as the fraud capital of Europe.
About the Author:
James Gladstone writes for various popular websites about financial based topics. You can find out more information on the credit card topic here.
posted by Credit Counseling at
5:08 AM
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