Watchdog issues advice on avoiding credit card fraud

The UK credit card watchdog has launched a new initiative to help protect shoppers and retailers from fraudulent phone, fax, internet credit card use as 'card not present' mail order fraud now costs £110 million-a-year.

More than eight out of 10 British shoppers who use debit or credit cards are expected to turn to the “new High Street” for their Christmas shopping this year – buying goods over the internet or by mail order, phone or fax. But many risk falling prey to the £300,000-a-day fraud problem because they are not following simple steps to protect themselves, industry specialists warned today.

Fraud on ‘card-not-present’ purchases has jumped by a third over the last two years to £109.6 million, and it is now the second-largest element of the £411.6 million of fraud on UK-issued debit and credit cards, according to statistics released today.

The latest report, released today by the Association for Payment Clearing Services’ (APACS) Card Watch showed many shoppers are still ignoring basic security precautions when using their cards:

• One in three never shred or burn their bank or credit card statements or receipts when they are finished with them;
• One in five have let others use their card to make purchases over the Internet, by mail order, by phone or by fax;
• One in five check their bank and credit card statements only sometimes, rarely or never;
• Only one in six are unconcerned at letting their card out of their sight when shopping.

APACS spokesperson Sandra Quinn, said: “If you let anyone have sight of your card, statements or receipts, you risk becoming a fraud victim. Internet, mail order, phone and fax transactions can offer a tempting target for card criminals.

“But there are simple steps you can take to protect yourselves. Check your statements carefully for fraudulent transactions. Burn or shred those statements – and card receipts - when you have finished with them. Don’t let your card out of your sight – and don’t let anyone else use your card or have sight of your card details.”

APACS has published new training and education materials this week for retailers worried about such fraud, outlining key fraud prevention tools and advice.

Banks and retailers are currently rolling out 'chip and PIN', a new initiative in which signatures will be replaced by four-digit personal identification numbers (PIN) for card transactions.

(SP)