redit card companies and Counterfeit fraud – this is the
their customers all have to most common type of card fraud.
think about and face up to The data on the magnetic strip on
the possibility of fraud. Both a credit card can be copied
sides have a responsibility to electronically onto another card
take steps to try and reduce the in a process called skimming.
risk of becoming a victim of this This is most likely to happen at
type of crime. cashpoint machines, shops, bars,
restaurants and petrol stations.
Credit card customers are not The card holder will be unaware
usually liable if their account that skimming has occurred. It is
is involved in fraud, unless they hoped that skimming will be
have been negligent. Negligence reduced now that the more secure
could include for example chip and pin system has been
disclosing a PIN number or introduced.
keeping a PIN number with their
card. Credit card companies will Loss or theft of cards – if you
take note of any unusual lose your card or it is stolen it
transaction on the account and is most likely to be used in the
contact customers to check the first few hours. Therefore it is
spending is genuine (this will important to report the loss
not affect your credit rating). immediately to the company and
the police.
In order to avoid fraud it helps
to be aware of the methods used Interceptions in the post – new
by fraudsters to obtain and cards and cheque books can be
misuse credit cards. intercepted while in the postal
system. If you are expecting a
What is credit card fraud? card/cheque book and it is not
delivered then you should inform
the bank. possibility. You will then be
able to see if accounts have been
Theft of account details – it is opened using your name.
recommended that any paperwork
which shows account details Cashpoint fraud – cards are often
should be shredded. This could stolen along with their PIN
include statements, receipts and number. When using a cashpoint
store cards. Details obtained machine make sure that nobody can
from rubbish bins can then be see you entering the PIN number.
used where the cardholder is not Put your card and cash away
present, for example mail order safely before leaving the
and internet transactions. The cashpoint and keep any printed
cardholder may be unaware of any items to discard safely later. If
problem until their statement you suspect the machine has been
arrives. tampered with or the machine does
not return your card, then
Identity fraud – Personal contact the bank immediately.
documents and other items such as
utility bills can be stolen and Steps you can take to protect
used to take over your identity. yourself from fraud
You should therefore be careful
about how you discard unwanted There is a lot you can do to keep
items. It is best to destroy your card safe and reduce the
personal documentation. Be warned risk of fraud.
that your credit rating can be
affected if you are a victim of Firstly don’t carry your cards in
identity fraud. Credit reference a pocket or on the top inside a
agencies can provide a copy of bag where they can be stolen more
you annual credit report if you easily.
are concerned about this
You should never tell anyone your company up to date then they will
PIN number even if they claim to be able to contact you
be the card issuer or police. immediately if they suspect any
Also never write the PIN number misuse of your card.
down and carry it with you.
Is it safe to use credit cards
When using a cash machine be online?
aware of anyone talking to you
and possibly trying to distract Millions of people in the UK now
you as they may be watching out use the internet to shop
for your PIN number. regularly online but many also
wonder how secure the internet
Keep your card company’s lost and is. As long as you are careful
stolen contact number to hand so and take some simple precautions,
that you can report any loss or shopping on the internet can be
theft immediately. Also remember safe as well as convenient.
to take the telephone number with
you if you travel abroad. Firstly only use websites you
know you can trust because they
Do not lose sight of your card or are well known or have been
leave it where details could be recommended. Make sure you know
copied. For example in a who the seller is by asking for a
restaurant the waiter should telephone number and postal
bring the terminal to the table address but do not accept a
or you should go to the till. mobile number or a post office
box number. It is unusual for
Always check your statement when credit card fraud to be the
it arrives and report any unknown result of computer hackers
transactions to the card company. breaking into a system and
If you keep your details with the stealing card details. As with
phone and mail order fraud, password they will not be able to
internet fraud mostly happens use your card details on any
because a credit card has been internet shopping sites
lost or stolen so the most participating in the scheme.
important thing is to keep your
card safe. Remember you should You should also take care to only
still sign the signature strip on use secure websites for shopping.
the back of the card even though Your browser window should
most now use the chip and PIN display a security icon at the
system. Never be tricked into bottom of the screen before you
revealing your PIN number or enter any credit card
passwords to online accounts. It information. When you submit an
can be easy to respond to order using a secure connection
unsolicited emails, phone calls the beginning of the website
or cold callers without realising address will change from “http”
that the real reason for the call to “https”.
is to obtain information useful
to criminals. It is vital to protect your
computer and ensure it is secure.
When you are shopping online you Simple steps such as using a
may well be given the chance to start up password rather than an
use a scheme involving use of a automatic login feature all help.
password. For example Verified by You can disable any browser
Visa option that remembers your
(www.visaeurope.com/verified) or username and password and also
MasterCard SecureCode file sharing software. This will
(www.mastercard.co.uk/securecode) mean that only you have access to
. You should accept the offer to your computer and the data stored
sign up to one of these schemes. on it. Make sure your computer
If a fraudster does not know your has the latest anti-virus
software and a firewall installed also to keep copies of terms and
and set your browser to the conditions, returns policy and so
highest level of security on. If there is a problem with
notification and monitoring. When the order you will then have all
you install your computer these the relevant information to hand
safety options may not be the when contacting your card
default. The most widely used company. This is particularly
browsers have websites with the important if you are buying from
latest version available to abroad as it can be more
download. difficult to sort out any
problems.
When shopping online it is a good
idea to print out your order and
About the Author:
This review was sponsored by the website www.betterborrowing.co.uk - The government and banking organisations take credit card fraud seriously and publish more advice on the website www.cardwatch.org.uk
Read more articles by:
Tracey Morgan
Article Source: www.iSnare.com 
