On line Plastic Fraud Increases

ON LINE PLASTIC FRAUD INCREASES

APACS has today published its six monthly report into credit card fraud. Whilst total card fraud losses have fallen by 13% in the six months to the end of June 2005 (from £252.6m to £219.4m) compared with the same period last year, nevertheless internet and mail order fraud has risen by 29% in the same period. As had been mentioned previously, Chip & Pin does not impact on this kind of fraud, known as Cardholder Not Present transactions. In addition Banking online fraud losses have risen from £4m, in the six month period to June last year, to £14.5m. Both have grown with the increase in transactions conducted online and mail order.

In this area the onus is much more on the cardholder and the merchant selling the goods. Cardholders are placing too much reliance on so-called Internet security and ignoring many of the measures that they can take themselves.

· Don’t give over card details or bank information to cold callers-how many of us have had telephone calls from energy providers offering to beat whatever price our current supplier is charging? All too easily we can be induced to provide our bank account details for Direct Debit purposes. Think – the caller now has your full name, possibly your date of birth, your bank details, your energy supplier and quite possibly the amount of your last bill. That kind of information would go a long way towards stealing your identity.

· Remember when using your computer to purchase over the Internet, to log off as soon as you have completed your transaction. If you leave the line open you are inviting fraudsters to hack in to your computer and steal information.

· Don’t respond to so called e-mails from your bank asking you to confirm account information. Your bank will never contact you in such a way. This is known as ‘Phishing’.

· Use, wherever possible, a secure shopping option verified by Visa or Mastercard

· Make sure you have security and virus protection on your computer.

· Ensure you keep a printed copy of your order.

Whilst Chip & Pin will impact on cardholder present transactions we must not become complacent and believe that it is a ‘Cure All’.