Topic: Bank fraud drops, card fraud up

[Clive]

Banking fraud in the UK dropped dramatically in the first half of 2007, though credit card fraud rose.

Figures released by the Association of Payment and Clearing Services (APACS) show that though online banking fraud dropped by 67 per cent in in the first six months of 2007 compared to the first half of 2006, there was a 42 per cent increase in phishing incidents.

Credit card fraud rose 26 per cent in the same period and this was largely down to a phenomenon known as card not present, or CNP, fraud.

CNP fraud happens when payments are made without the retailer seeing the card being used, such as when items are bought online or over the phone.

Sandra Quinn, director of communications at APACS, said: "Cardholders should be aware that the majority of online fraud involves a criminal obtaining card details in the real world that are then used to shop fraudulently online.

"We continue to urge people to register with the secure online payment systems - MasterCard SecureCode and Verified by Visa - which help prevent cards being used fraudulently over the internet," she continued.

www.apacs.org.uk
www.cardwatch.org.uk

[Rik]

I am registered with the Verified by Visa scheme. Despite that, I've still had Barclaycard decline a transaction, forcing me to phone them to resolve it. Luckily, merchants are used to this happening these days so it's less embarrassing than it might have been. It does beg the question, though, why have these schemes if they don't trust them?

[Clive]

I was embarrassed at a hotel in Bangkok recently when my card was rejected.  I phoned up the card company who told me that I should have informed them I was going away!   

[Rik]

But they don't tell you that in their literature, do they?

[Clive]

I certainly wasn't aware of it!  It always feels uncomfortable when you are standing there with the word "FRAUDSTER" stamped in large letters on your forehead.  You always notice that everyone else moves a little farther away from you. 

[Rik]

That's more to do with your deodorant, Clive. 

[Simon]

I've actually had two different credit cards defrauded, both with the Halifax.  On each occasion, they refunded the money immediately, rather than making me wait for a string of procedures to take place, which I was quite impressed about.  I have never had my card declined when making a purchase, but they always ring about an hour later, if the purchase is over a certain amount.

I wonder if people are slightly complacent, knowing that they will get their money back if their card is defrauded, and as a result, are not being sufficiently security conscious?  I know it makes me feel safer shopping online, knowing that I am protected, but I am still very careful where I use my card, because of the hassle of having to cancel it, in the event of a suspected fraud, with online orders pending. 

[Clive]

I have to say that I was rather annoyed last August when, the day before I was about to go away on holiday, my card company phoned up to say that my credit card was one of a batch that had been compromised.  No illegal transactions had taken place but they had to cancel the card as a precaution.  When I asked them what I was supposed to do about going away on holiday they told me to use another card since I wouldn't get a new one for at least a week.  I only had one card at the time and managed to survive by using my debit card.  However, I now have a card with a second company which I use specifically for holidays abroad.  That was the one that let me down of course! 

[Simon]

I got into the habit of 'card-hopping' a while back so as to go from one 0% deal to another, so I therefore have three or four 'spare' cards with zero balances, but loads of available credit!    I have stuck to my Virgin card for a while now, so it might be worth having another shop round. 

[Camstop]

I built a two bedroom + two bathroom extension to my house on the back of 0% cards but that's another forum 


Clive looks like they changed a few things and you got caught out with that card they cancelled and you should always inform your card if your planning to use it abroad.

That's as basic as someone not using a firewall on a pc in credit card terms 

[Clive]

My son bought a £250,000 apartment using the same method Cammy.  I wouldn't be able to sleep at night!

[Simon]

As long as you have the means to pay off the debts, I don't see it as a problem.  If the card companies want to entice people to use their cards by offering 0% deals, then that's great, but it doesn't mean we have to continue using the card when they start charging interest.

Also, never take out the PPI (Payment Protection Insurance).  There was an article on Jeremy Vine yesterday, where Martin Lewis (www.moneysavingexpert.com) was saying that the PPIs mean nothing and that there are so many get out clauses, people can rarely successfully claim off them, and half of them are illegal, because people didn't realise they were signing up for one, or they were forced onto people as conditions of loan agreements.  Apparently there is a reclaim offensive going on, much like that of bank charges.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance