Beware of Credit Card Fraud over the phone

In the current economic recession Credit Card fraud is on the rise. What more surprising is the rise in popularity of an old style phone scam that involves the fraudsters conning unsuspecting cardholders into revealing their card details by pretending to be an employee from a bank or credit card company. In many instances they will pretend to be from international card schemes like Visa or Mastercard.

The scam usually starts with the fraudster phoning you up claiming to be from the fraud or security department and indicating that your credit card or debit card has been red flagged as having potentially fraudulent transactions having taken place. The victim will become more trusting as the caller is offering assistance in rectifying the problem.

Now days its quite easy for fraudsters to get hold of customers bank details. These can be bought for a small amount over the internet or from countries that are large outsourcing or offshore depots for the large banks and credit card companies. By having this information at hand when making the call the fraudster seems more legitimate. What they may not have is the 3 digit security code on the back of your card. A clear way for them to get this from you is to say that they will credit the fraudulent amount back onto your card but in order to do this will need the 3 digit number to process the refund.

Once these details have been given out the fraudster is free to make phone and internet purchases using your card details. You should never disclose your card details from someone that has cold called you no matter who they claim to be from. If the caller is from your card company they should have all your details at hand. If you have any doubts hang up and call your card company to see if in fact there is a query on your card.

Nowadays it’s not enough to just keep your card details safe and secure. By following these common sense steps you will greatly minimise the chances of being conned by a fraudster.

Handy Tips:

• Don’t let your cards or your card details out of your sight when making a transaction.

• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.

• Do not disclose PINs, login details or passwords in response to unsolicited emails or telephone callers claiming to be from your bank, the card schemes or the police.

• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.

• Do not keep your passwords, login details and PINs written down

• Make sure your computer has up-to-date anti-virus software and a firewall installed and switched on.

• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.

• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.

• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.

• Always log out after shopping and save the confirmation email as a record of your purchase.

• Register your cards with Verified by Visa or MasterCard SecureCode².

Look for this sign:

There is no substitute for common sense, always be vigilent when using your card to minimise putting your card at risk of being cloned and used by a Fraudster.

Credit Card Fraud on the increase

New technology is being introduced by HSBC to combat the increasing levels of Credit Card Fraud being experienced at the moment. Credit Card fraud has risen by 14% in the first 6 month of 2008 and figures show that fraud abroad makes up 40% of all card crime.

HSBC will be screening all credit card transactions in real time making decisions in seconds. In the past only 25% of card transaction where checked which gave way to a huge gapping hole of opportunity. Credit Card fraud actually dropped started falling for several years but has taken a dramatic turn in 2007. Figures reveal that credit card fraud could have exceeded £600 million in 2008.
Trying to comabt card fraud is a constant battle as new and improved techniques are introduced fraudsters are always finding ways to get around them. Chip and Pin was succesful for about 18 months before fraudsters found a way to get around this, so more sophisticated measures are being adopted by Banks and card companies.

Find out more here.