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By Neil Hawkins
Senior Staff Writer
11 September 2009
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Prevent Credit Card Fraud
With our top credit card tips:
Credit Card Fraud Prevention
- Use different passwords for every online account with letters and numbers.
- Never click on links in emails, always go directly to your online banking.
- Don't send sensitive information via email.
- Keep Internet Explorer up to date to enhance online security.
- Consider insurance against credit card fraud from a major card supplier.
ID Fraud Prevention
As well as all the tips above:
- Shred personal documents when disposing of them - even better, use them as bedding for pets who will then munch through them.
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CREDIT card fraud is big business. In 2006 credit card fraud in the United Kingdom was estimated at £535 million.
Although criminals have developed sophisticated techniques to carry out credit card fraud, however, it can be avoided by following simple rules and closely guarding your personal information.
A recent report identified London, Liverpool and Manchester as the credit card fraud capitals of the UK, whilst the Shetland Islands was the least fraudulent place with just 14 bad transactions in the past year.
So short of upping sticks and slinging your hook to the middle of nowhere what can you do to avoid credit card fraud?
Credit card and ID fraud scams to watch
The two most common types of credit card fraud are 'phishing' scams and card skimming.
- Phishing
A common credit card or ID fraud these days is the phishing scam.
It involves a forged email arriving in your inbox purporting to come from your bank or a major online company such as Paypal or Amazon usually asking you to 'update details'.
Inside the email will be links which often lead to a convincing website containing a fake form asking you for personal information.
Funnily enough, this will be just the right amount of personal information to enable a fraudster to steal your identity, money and well, that's bad enough already isn't it?!
In reality, banks and reputable companies would never ever ask for sensitive information via email.
If you get a phone call from your bank and they ask for sensitive information or account details, be suspicious - ask them to prove who they are.
If they work for your bank and have your number then they will have everything else they need to know in front of them.
- Skimming
Another common credit card fraud is 'skimming' which occurs in the middle of an otherwise legitimate credit card or debit card transaction.
Once mostly known for occurring in bars, restaurants or anywhere your card was taken out of view for a moment, it is now becoming increasingly more prevalent on ATM's where a device is fitted to the card reader and the details 'skimmed' from the magnetic strip as the card goes inside.
Check out our top tips on credit card fraud prevention in our FAQ on the right.
Be vigilant
Criminals often try and hide their frauds by committing lots of little credit card frauds rather than a few big ones.
This way they are less noticeable and they can get away with it for longer.
To counter this, always check your credit card statements very closely and query any dodgy transactions or one you don't remember making with your credit cad provider.
Best Credit cards with fraud protection
If credit card fraud and ID fraud worry you then you can give yourself additional protection by taking out a credit card which offers free anti-fraud services.
The runaway best is the Captial One credit card.
This gives you free access to Capital One's ID fraud alert service whether you use the card or not. Not only that but it applies to all your cards not just Capital One's own.
In addition to this Capital One's credit card lets you access your credit file for free via Equifax and offers free 24/7 assistance.
Other credit card providers carry out basic fraud checks and some allow you to buy protection services.
With Barclaycard, for example, you can set up an Identity Protection Alert for £69.99 a year which not only gives an early warning but also covers you up to £60,000 in the costs to help you to clear your name.
If it all goes pear-shaped...
If the worst does happen and you lose your card, fall victim to credit card fraud or even if you suspect some fraud of having taken place, contact your bank immediately.
You may not be covered if you don't report it straight away. Likewise, if you have given out personal information carelessly you may not get your money back.
Lesson: Don't give out your personal information.
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