The increase in card fraud means that everyone is more at risk of falling victim to this type of crime. However, the risk increases sharply for those that use the Internet, as fraudsters these days often use sophisticated methods to commit their crimes online. It is thought that around 90 percent of adults in England and Wales have a plastic card of some sort, which puts a lot of people at risk from this type of fraud.

The level of card fraud last year compared to the previous year is said to have increased quite sharply, and with many people now using the Internet to make a range of purchases it has become vital for extreme care and caution to be exercised by cardholders.

Those that use the Internet to make purchases using their credit or debit cards are advised to ensure that they are using a reputable site, and to make sure that the site is a secure one. Cardholders should also make sure that the company that they are making a purchase through has a valid address and phone number on the site so that they can be contacted.

One industry official said: “It has become more important than ever for cardholder to be cautious when using their cards online. Making online purchases offers plenty of benefits, but the user just needs to make sure that they are sensible and careful when using their card.”

Risk of card fraud increases with internet use is a post from: Credit Cards Web

However, one of the issues that has caused concern for credit card users is the issue of fraud. Many card users are in constant fear of falling victim to credit card fraud, and in particular the type of credit card fraud known as CNP or Card Not Present fraud.

With CNP fraud the fraudster does not have to physically be in possession of the credit card when making a transaction, and examples of this would be purchases made online, by phone, or by mail order where only the details of the card are required and not the actual card itself.

With more and more people using the Internet to make purchases, which involves inputting details from their credit cards, fraudsters have found new and sophisticated means of extracting the data that they need from the card via the Internet, and once they have obtained the details they can go about their fraudulent business.

Whilst there have been suggested from industry groups that the level of CNP fraud actually fell over the course of 2009 many are still understandably concerned about this type of crime, and for many this puts them off using their card online, stripping them of the freedom to enjoy the huge choice of services and goods that can be purchased via the Internet.

Whilst there is no reason why consumers should not be able to enjoy the benefits of making purchases online it is important for those that do this to be safe and careful about entering card details on the Internet. The most important thing to bear in mind is that the site that you are buying through should be a safe and secure site. You can determine this by the padlock sign on the website or the address, which should start with https, both of which indicate a secure site that encrypts your data.

A member of the UK Payments Council advised: “You should satisfy yourself that whoever you are dealing with is a bona fide business. You can do that by making sure that they’ve got an address and a landline phone number on their site and also by checking that you have the option of signing up for either the Verified by Visa or MasterCard SecureCode payment.”

 

Protecting yourself against CNP fraud is a post from: Credit Cards Web

According to reports the personal data of anyone that used a Visa or Mastercard in Spain may have been compromised as a result of the scam. As many as 100,000 cards in Germany are thought to have been recalled as a result of the scam, and many consumers in the UK were set to be contacted if it was thought that they had been affected.

Whilst consumers have been assured that they will be protected in the event of scams such as this they are also being warned to remain vigilant and check their statements or even their credit reports to ensure that there is no sign of suspicious activity and transactions. A Spanish credit card processing company is thought to be involved in the scam, and has been investigated by Spanish authorities according to reports.

It is thought that the problem has occurred somewhere in the payment chain itself, as both Visa and Mastercard have stated that their systems have not been hacked or compromised in any way.

Visa did confirm that “it is aware of a possible card data security issue in Spain. No details are yet confirmed, but we do not believe that the issue is specific to Visa.”

Credit card scams have become more and more common particularly abroad, where many Brits that do not have the security of Chip and Pin transactions abroad find themselves becoming victims of credit card fraud. Those using credit cards abroad are always urged to be vigilant and careful with their card details and their cards, and to ensure that they keep an eye on statements.

Spanish credit card scam causing concern is a post from: Credit Cards Web

Capital One is one of the credit card firms to have made this move, and has tried to defend its actions by stating that the reasoning behind the interest rate hikes is to reflect the higher risk of some customers combined with current market conditions.

Officials have said that some consumers could end up paying a massive 40 percent interest on their Christmas purchases if they use these high interest cards unless they are able to pay off the balance in full before interest starts being charged. Some may have been planning to use their cards to pick up bargains in the January sales, but again these bargains will turn into costly items if they end up having to pay 40 percent interest.

Customers have described the card hikes as ‘legalised extortion’ and have expressed anger over the credit card provider’s decision to increase rates in this way with Christmas approaching and many consumers already struggling in terms of their finances.

Recently Labour government officials including Gordon Brown and Alistair Darling said that they would be cracking down on credit card firms to ensure that customers were treated fairly, and these moves are said to have made a mockery of these efforts.

An official from Capital One said: ‘Due to current market conditions, we have had to increase rates for some customers. As a full spectrum lender, the interest rate increases we have made are based on our customers’ risk profiles. The economic environment has changed dramatically and we must adjust rates to account appropriately for the increased risk of lending in an economic downturn.’

Credit card firms push up rates in time for Christmas is a post from: Credit Cards Web

In most cases banks have been reimbursing consumers who have had their credit cards stolen and money used as long as the customer did not act with undue care and did not act fraudulently.

However, in the current financial climate an increasing number of credit card providers have been looking at ways to try and recoup money, and according to some industry officials are finding new ways to turn customers down for a refund when they have their credit cards stolen and money taken off the account.

In many cases the provider is trying to claim that the consumer left their PIN with the card, thus failing to act with reasonable care.

An official from APACS, the payment clearance group, said that member banks had to abide by regulations with regards to this issue, stating: “The bank or card company must be able to demonstrate that the customer has either been negligent with their cards details, or that they are a knowing party to the fraud, before turning down a customer’s fraud claim.”

An official from the consumer campaign group, Which?, said: “There are just too many cases like this for it to be people actually being careless. If people are saying they haven’t been careless, you have to call into question the kind of proof that they’re using.”

Industry groups and campaigners are now calling for banks and credit card providers to treat consumers more fairly when they become the victim of such crime, rather than looking for ways to get out of paying them.

Calls for increased fairness for victims of credit card fraud is a post from: Credit Cards Web

The figures were released by the industry group Financial Fraud Action UK, and the data suggests that fraud on plastic cards in the first half of this year was down by an impressive 23 percent compared to the first half and the second half of last year.

In the first six months of this year losses are said to have totalled around £233 million, which reflected the 23 percent fall in plastic card crime, which has become a matter of great concern over recent years, with fraudsters using increasingly sophisticated methods to conduct this sort of criminal activity.

Some experts believe that the reason for the drop is that fraudsters are now targeting foreign plastic cards.

Whilst the news about the drop in plastic card fraud will be welcomed by the industry and by consumers, reports also suggested that there had been a sharp increase in online banking fraud, which is said to have increased by a massive 55 percent compared to the first half of last year.

Referring to the drop in card crime one industry official said: “Although it’s difficult to prove, we think that one of the reasons for this dip in card losses may simply be as a result of fraudsters realising that they can prosper more by targeting foreign-issued cards.

Particularly those without chip-and-pin protection and which currently have stronger currencies than sterling.

The fact that we’ve seen a 36% increase in the first half of this year in the amount of fraud being committed on foreign-issued cards here in the UK adds some weight to this theory.”

Drop reported in plastic card fraud is a post from: Credit Cards Web

Officials have said that an online black market is being used by the criminals to sell the credit card details that they have stolen, and in some cases all it will cost of someone to get their hands on the card details of a consumer is four pence.

Research has shown that these rock bottom prices that are being charged by the cybercriminals are making it increasingly easy for those that want to use another person’s credit card and steal their identity.

The Internet has given rise to a new breed of criminals that steal account details and identities, and many of these trade account details, personal details, and contact details of people for a matter of a few pennies. One report claimed that it was possible to buy a full identity for just £45.

One industry official said: “The majority of us use the internet, but there is a very real and growing criminal underworld we are often not aware of. We need to do more to protect ourselves from these online perils, especially as national police forces find it dauntingly hard to stop cybercriminals from operating from other countries.”

Another said that phishing scams are quite common, and that people often fall for these, stating: “These usually ask for confirmation of account information and can seem very legitimate, perhaps featuring your bank’s logo.”

One professor said that these criminals were becoming increasingly sophisticated and innovative with regards to how they commited their crimes, stating: “The crime window is now much shorter than it was and criminals are becoming very innovative, constantly seeking novel new ways to defraud people.”

Credit card details being sold for just four pence is a post from: Credit Cards Web

However, customers that have signed up to one such product to receive a trial have found themselves at the centre of what has been described as a credit card scam.

The scam is in connection to a product called Acai berries, which have been features strongly in the media with claims that they can really help those looking to lose weight.

With these claims still ringing in their ears many consumers have signed up to receive a free trial of the berries, but have had to enter their credit card details in order to receive the free trial, with money being taken off the card to cover packaging and postage.

However, these consumers have then experienced a shock as they have found that they are then locked into a monthly payment on the card, and the payment is very difficult to get out of.

In fact, the only way to break the monthly payments for consumers is to cancel the credit card altogether. Many consumers have now complained about this.

Industry officials said that many complaints had been received from customers who had signed up to the free trial, given their credit card details, and found themselves suddenly and unexpectedly locked into a monthly standing order.

The officials also said: “The benefits of the acai berry can be had by consuming practically every other type of fruit and it does not have any slimming effects whatsoever.”

Customer credit card details at risk over weight loss pills is a post from: Credit Cards Web

One customer service representative has spoken out to say that contact centres pose a degree of risk to cardholders, and that consumers’ card details could be at risk when handed over to some contact centres.

The industry official said that there were often security breaches at some contact centres, and that these breaches in security probably occurred far more frequently than some people imagined.

He added that the security of credit card details had been improved as a result of CHIP and PIN technology, but that on many occasions consumers had to make transactions without the use of this technology, which is where the increased risks were seen.

Mr Bishop, who is the managing director of a customer services firm, said: “There are vast numbers of instances when full card details need to be provided over the phone, such as paying for car insurance or making a payment on a credit or store card for example. In these cases, without the right security measures in place, businesses could essentially be placing their customers right into the hands of a fraudster without even realising it.”

Credit card fraud has become a serious concern over recent years, and despite increasing protection through chip and pin technology fraudsters have found increasingly sophisticated ways to commit this type of crime. In addition, a number of serious security breaches have caused concern over recent years, including loss of sensitive information by banks, retailers, and even Revenue and Customs.

Possibility of credit card fraud at contact centres is a post from: Credit Cards Web

The recent report highlighted areas where this sort of fraud was rife, and other areas of the UK where this type of activity was seen to be high included Birmingham, Manchester, Glasgow, and Liverpool.

The report also showed that the area where the biggest financial losses were seen as a result of this type of fraud was south east London, where financial losses from online credit card fraud amounted to around £16 million.

It is thought that in Shildon there are just a few people that are responsible for these transactions, as there are only ten thousand residents in the whole place.

Credit card fraud has been prevalent for some years now, and despite the fact that CHIP and PIN technology has been brought in this is a form of fraud that has been getting worse in terms of CNP fraud, or Card Not Present fraud. This includes fraud that is conducted online, by phone, or by mail order – basically where the card is not physically required to make the purchase.

One official said that the problem had been getting worse and worse, and that there was a lack of measures in place to keep this type of fraud down because of it being a difficult type of crime to investigate.

He said: “The problem’s been getting worse year on year and there’s a lack of policing, mainly because it’s a difficult crime to investigate”.

County Durham rife for online card fraud is a post from: Credit Cards Web