[12/03/2011] Payment fraud – know your rights
Consumers in the UK have lost more than £600m in credit card fraud in 2008 alone and even though some of the latest figures show a slight decline, the numbers are still staggering. Whether you shop online or use your cards to withdraw cash from an ATM, there is always a con artist nearby, looking for a new and clever ways to dip into your savings. The adoption of chip-and-pin cards has made the fraudsters work harder and now, the fraud is largely committed by well-organized criminals rather than opportunistic, sole con artists. The cards with chips are far more difficult to clone and the use of a number of security measures, built in the chips makes the intercepted data useless to the criminals. The same chips, which made possible the use of mobile phones as payment medium, could be switched off by the consumer at any time and every single purchase made has to be confirmed by entering a PIN code, which serves as an additional layer of protection. However, the fraudsters were quick to adapt to the new changes too and today, close to 40% of the cards are used overseas, where the technology has not caught up.
Online fraud, which rose drastically in 2008, is also another cause of concern and though the latest statistics are more encouraging, the number of phishing attempts is also on the rise. Greater awareness amongst the consumers of the tactics, used by criminals is believed to be one of the most effective ways to combat online fraud and many security specialists believe that the simplest measures are often the most effective. Even though Internet, phone, and mail orders are still somewhat risky, the largest card issuers and banks are implementing even stricter measures that could bring the numbers of the misused cards down.
What can you do to prevent your financial information from falling into the wrong hands?
- When paying at a department store, café, or restaurant, do not let your card out of sight
- Do not write your PIN code on the back of your card or on a note, which you carry together with your card
- When shopping online, stick to well-known and reputable websites and always check if the payment forms are protected by encryption
- Do not reveal your credit card details to strangers
- Do not respond to unsolicited message, especially if they contain attachments
- After you finish shopping online, always log out of the website and copy the receipt of the purchase
- Avoid making purchases from public computers
It is also advisable to inspect your monthly card statements regularly in order to spot unauthorized transactions and you could also access your credit file occasionally in order to watch for unusual activities.
Who covers the losses if you fall victim of a card fraud?
As long as you have not been negligent, you are not liable for any losses and you are protected by the Banking Code. There are some specific cases, where you might have to cover the first £50 from the losses and these are the cases when you have given the PIN code to somebody else or your card is used before you report it stolen.
Other articles from this category:
[15/02/2011] How CYTT works?
[15/02/2011] Does it really work?
[15/02/2011] Stay away from these scams
[15/02/2011] Valentine’s Day scams
[12/03/2011] How you can complain about financial services
[12/03/2011] What is Phishing?
[12/03/2011] What is Malware?
[12/03/2011] What is Spear phishing?
[12/07/2011] How to write a Complaint Letter
[03/04/2012] How to fight a case in a small court
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