Fraud losses
Fraud losses on credit and debit cards rose by 20 per cent in 2004 to £504.8 million as the organised criminal gangs responsible increased their illegal activities before the full security benefits of Chip and Pin are realised.
   Although we are now seeing a decline in counterfeit and lost and stolen card fraud due to the implementation of chip and Pin, cardholders in the UK can help to make their cards safer than they already are by following straightforward tips and advice. More information about all aspects of card fraud and its prevention can be found at www.cardwatch.org.uk.

General advice
You can help yourself to prevent fraudulent transactions involving your money by following this advice. Don’t let your cards or your card details out of your sight when making a transaction. Don’t carelessly discard receipts from card transactions. Tear up, or preferably shred, any documents that contain information relating to your financial affairs. Check receipts against statements carefully. If you find an unfamiliar transaction, contact your card issuer immediately. Never write down your PIN and never disclose it to anyone, even if they claim to be from your bank or the police. Be wary of anyone trying to watch you enter your PIN, especially at a cash machine. Do not allow yourself to be distracted and shield the keypad with your spare hand. Report lost or stolen cards or suspected fraudulent use of your card account to your card company immediately. The 24-hour emergency number is on your last statement or call directory enquiries.

When making phone transactions using your credit, debit or charge card:
Don't give your card details over the phone to cold callers. Only make telephone transactions when you have instigated the call and are familiar with the company. Have the card in front of you. You will be asked for information including the account number and expiry date. Additionally, you may be asked for the three or four-digit card security code on the signature strip, issue number, your name as it appears on your card and the address as it appears on your card statement. Never give your PIN to anyone - including over the phone. Your bank or the police will never ask you to disclose your PIN.
   Always ask the retailer to confirm the full price to be charged to your card, including any booking fees, delivery charges etc. Make a note of this at the time. If the retailer sends you written confirmation of the order, check the bill to ensure that it is correct. Keep any such receipts and check them off against your next statement. Always check the statements from your bank or card company carefully as soon as you receive

Mike Son Looks at Fraud and Identity Stealing and How to Prevent them!

Safe Internet usage
Make sure your computer has up-to-date anti-virus software and a firewall installed. You should also download the latest security updates, known as patches, for your browser from the Internet. Internet Explorer users can download from
HERE.
   Make sure your browser is set to the highest level of security notification and monitoring. The safety options are not always activated by default when you install your computer. The most popular browsers include Microsoft Internet Explorer, Firefox and Opera. Check that you are using a recent version - you can usually download the latest version from there websites.
   The banking industry has launched a one-stop consumer and small business advice site at www.banksafeonline.org.uk to help Internet users protect themselves from online scams and threats.
   Only shop at secure websites -ensure that the security icon, the locked padlock or unbroken key symbol, is showing in the bottom right of your browser window before sending your card details.  The beginning of the retailer's Internet address will change from 'http' to 'https' when a purchase is made using a secure connection.  Use sites you can trust, for example sites you know or that have been recommended to you or that carry the TrustUK logo.  Click on the security icon to ensure that the retailer has a valid encryption certificate - the address on this certificate should conform to the address on the address bar. The certificate should ensure the identity of the website and the current day's date should be within the validity dates of the certificate.
   Print out your order and keep copies of the retailer's terms and conditions, returns policy, delivery conditions, postal address (not a post office box) and phone number (not a mobile number).  There may be additional charges such as local taxes and postage, particularly if you are purchasing from abroad. When buying from overseas, remember that it may be difficult to seek redress if problems arise, but having all the aforementioned information will help your card issuer take up your case if you subsequently have any difficulties.
   Ensure you are fully aware of any payment commitments you are entering into, including whether you are instructing a single payment or a series of payments and check statements from your card company as soon as you receive them. If you regularly make transactions over the Internet, consider opening a separate credit card account specifically for these transactions.  Sign up to Verified by Visa and MasterCard SecureCode on a retailer’s or your card company’s website. By signing up you will be further safeguarding your card details from online misuse.
   Further information about e-shopping is available by visiting the Department of Trade and Industry's Consumer Gateway site at www.consumerdirect.gov.uk.
   If an unsolicited offer to make money or buy cheap goods online sounds too good to be true, then it probably is!

Precautions when going abroad with cards
   Only take the cards you intend to use – store the rest securely at home. Some banks suggest that you advise them if you are going to use your card abroad to ensure that any transactions you make are not treated by the card company as unusual spending. Make a note of your card companies’ emergency contact numbers and keep the information somewhere other than your purse or wallet.

What to do if you are a victim of card fraud in general
If you discover that your card has been lost or stolen or that you have been the victim of a fraud tell your bank or card company immediately. If someone else uses your card before you tell your card company it has been lost or stolen or before you tell them that someone else knows your PIN, 

the most you will have to pay, in
theory, is £50. In practice the bank or building society will usually refund the full amount lost.
But if the cardholder is found to have acted fraudulently or without reasonable care, for example, by keeping their PIN written down with their card, they would have to meet all the losses.
   If your card is used fraudulently but you still have the card in your possession, you will not be liable to pay for any losses. You may still have the card in your possession if you are a victim of card-not-present fraud or if the magnetic stripe on your card has been counterfeited. If your customer wants you to accept a card that doesn’t swipe, it could be fraud. Don’t accept it.
   If your card is used fraudulently before you receive it, you will not have to pay for any losses.
   The Banking Code offers UK cardholders protection from card fraud losses that are second to none throughout the world.

ID fraud – tips to help keep your identity safe
Keep personal documents, plastic cards and chequebooks in a safe and secure place. Keep chequebooks and cards separately. Valuable documents include your passport, birth certificate, driving licence, plastic cards, card receipts, financial statements and even utility bills.  Without access to this information, criminals find it difficult to pretend to be you!
   Don’t share personal information unless you are entirely confident you know whom you are dealing with. Be particularly cautious if you are cold-called by someone claiming to be from a bank or the police. Your bank would only ever ask for specific characters within your password, not the whole password. Ask them for their phone number, check it and call them back. Also, be wary of responding to unsolicited e-mails requesting information. Ask for proof of identity or undertake your own checks. Again, never disclose your PIN to anyone. Shred any documents that could help someone to steal your identity.
   If you move house, make sure you contact your bank and all other organisations to give them your change of address (the Post Office can redirect post on request).

Some warning signs of ID theft and fraud
Your regular bank or credit card statements fail to appear. You notice that some of your mail is missing. Your credit card statement includes charges for items you have not purchased or ordered. A debt collection agency contacts you about goods you have not ordered or an account you have never opened. You receive a telephone call or letter saying you have been approved or denied credit for accounts you know nothing about.

What to do if you have been a victim of ID fraud
Contact your bank or financial institution concerned and keeps a record of all communication.
   Report the incident to the police, especially if it involves stolen identification documents, and ask for a Crime Reference Number, or documentation to record the incident. Check with the credit reference agencies detailed below. If applications for credit have been made in your name, you can ask to have any incorrect information removed

Experian: 0870 241 6212 (www.experian.co.uk)

Mike Son
DaC Customer Services /
Special Projects