Maw Comms news

20 Jun, 16 How to avoid being a victim of card fraud

Gocompare.com provides tips to help reduce the risk of becoming a victim of fraud

• Last year, fraud losses on payment cards totalled £567 million;

• Cardholders urged to keep their cards and personal data safe and secure, both physically and online, by PIN protecting it and shredding no-longer needed documents;

• New infographic checklist to make sure your money is more secure online.

Card fraud is big business for crooks. According to Financial Fraud Action UK¹ (FFA UK), fraud losses on payment cards (credit, debit, charge and ATM-only cards) totalled £567.5 million in 2015, an increase of 18% on the previous year.  It accounted for three-quarters of financial fraud losses.

In addition to pickpocketing and distraction thefts, criminals use technology to steal personal data in order to conduct impersonation and deception scams. Unlocked smartphones and tablets provide a treasure trove of data for crooks, giving them access to personal contact details, mobile banking details and other financial transactions.

Matt Sanders, from Gocompare.com Money commented, “We’re all potential targets for fraudsters and, as FFA UK’s figures clearly show, an increasing number of people are taken in by criminals’ increasingly sophisticated scams. But, it’s far easier to guard against fraud if you’re aware of the different types of scams criminals operate and know the warning signs to look out for.

“Fraudsters continually seek new ways to scam unsuspecting people. Our increasing use of technology to do everything from holding our address book and diary to online shopping and banking means that criminals are also logging-on to find new ways to steal our personal information and raid bank accounts.  To thieves, the personal data held on a smartphone or tablet can be more valuable than the device itself.  So, always PIN protect your mobile device.

“Social media sites can also provide a rich seam of personal information which can be used for identity theft and financial fraud. Social media platforms encourage users to provide as much personal information as possible, including users’ full names, birth dates, relationship status – even pet names.  Crooks can use this information to build up a personal profile and guess the answer to bank and payment card provider security questions.  So, we would recommend users of these sites to use privacy settings to protect their personal information.”

Types of payment card fraud:

Card-not-present fraud:   Also known as ‘remote purchase fraud’, this type of fraud occurs when card details are fraudulently used to make purchases that don’t require you to physically present a card. These include purchases made online, through the post or over the telephone.  Criminals fraudulently obtain card details using a range of tactics such as recording card details during a legitimate transaction or downloading malware on to the victim’s computer.  

Lost and stolen cards: Fraudsters use a lost or stolen card to make a purchase or to withdraw cash from an ATM.

Card ID theft: Criminals use fraudulently obtained cards or card details along with stolen personal information to either open or take over a card account held in someone else’s name. Card ID theft takes two forms:

• Application fraud: a criminal uses stolen, discarded or fake documents to open an account in someone else’s name.
• Account take over: a criminal takes over another person’s genuine card. Fraudulently obtained personal information is used to deceive the card company and the fraudster can carry out transactions from the account, request changes to the account or ask for a new card to be issued.

Card not received fraud: Cards may be stolen in transit between the card issuer and the genuine card holder. The risk of this type of fraud increases if you live somewhere with communal letterboxes which provide shared access to mail.

Cash machine fraud:  Criminals target ATMs to steal cards and card data.  Tactics range from peering over someone’s shoulder to see their PIN, then stealing their card – to the use of devices attached an ATM which can copy or ‘skim’ card details and PIN number and trap the card in the machine.

Counterfeit card fraud:  This type of card fraud involves criminals creating a fake card using details from the magnetic strip of a genuine card.   Counterfeit cards are typically for used overseas in countries which haven’t upgraded to Chip & PIN.

Gocompare.com Money’s tips on reducing the risk of becoming a victim of card payment fraud:

Protect your cards and your personal information:

• Never provide debit or credit card numbers or PINs or other personal information in response to an unsolicited email, online or telephone request. Genuine banks and card providers never request information in this way;
• When you receive a new payment card – remember to sign the back;
• Never let your card or card details out of sight when making a transaction;
• Protect your personal information on social media, use privacy settings and don’t accept friend requests from people you don’t know;
• Don’t use the same passwords for social media sites and online banking;
• Access your online financial accounts by typing the web address into your browser;
• Buy a shredder to dispose of card statements and other documents containing personal or financial information you no longer need;
• Always PIN protect smartphones and other mobile devices.

Protect your PIN and keep it secret:

• Choose a strong PIN. Don’t use obvious numbers, for example, the year you were born, your wedding anniversary, telephone or house number. Fraudsters can easily pick-up this kind of personal information from social media profiles and online directories.
• Memorise your PIN – don’t write it down or disclose it to anyone else;
• Don’t use the same PIN for all your payment cards;
• When using an ATM or other card reader always shield your PIN with your hand.

Online safety measures:

• Regularly update your computer’s firewall or antivirus software;
• When shopping online, always look carefully at the site for secure transaction symbols. The web address should start ‘https’ and the page should display the secure payment ‘lock’ logo;
• If possible, always shop or bank online from your personal computer;
• Always log-off from a site once you’ve completed a transaction.

Regularly review card and bank statements:

• Check statements on a regular basis and look out for unusual or unauthorised transactions;
• Contact your card provider immediately if you suspect fraud.

Diary dates:

• Note when you should be receiving a new payment card. If it doesn’t arrive when you expect it, contact the card provider as soon as possible.

Gocompare.com has produced an infographic checklist to make sure your money is more secure online: http://www.gocompare.com/money/protecting-your-money-online/

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For further information please contact:

Anders Nilsson or Martyn John at Gocompare.com on 01633 654 054 / 01633 654 725

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Notes to editors:

¹Financial Fraud Action UK is responsible for leading the collective fight against fraud in the UK payments industry. Its membership includes the major banks, credit, debt and charge card issuers, and card payment acquirers.  Data sourced from FFA UK’s report ‘Year-end 2015 fraud update: Payment cards, remote banking and cheque’ 17 March 2016.

Gocompare.com is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs. Gocompare.com does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. Gocompare.com makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site. Gocompare.com does not sell its customers’ data.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. Gocompare.com has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

Gocompare.com Ltd became a member of the esure group of companies on 31 March 2015.  esure launched as a brand in 2001 and added Sheilas’ Wheels in 2005.  It is one of the UK’s largest personal lines general insurance businesses. Gocompare.com is based in Newport, South Wales.

Gocompare.com is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).