London has been named and shamed as the credit card fraud capital of the UK for the second year running, according to figures recently released. Insurance company CPP reported that 38% of the capitals credit card users had been the victim of fraud in 2008 " a jump of 10% on previous figures. In just 12 months nearly three million people had their identities stolen and their credit and debit cards scammed. This number constitutes a third of all credit card fraud in Britain and is on the rise. The average amount stolen was 650, although some people suffered much higher losses. Often completely unaware that they had been the victims of criminal activity, the first customers knew of the attack was when notified of it by their bank.
These frightening statistics show how fraudsters are making life difficult for innocent people and just how easily they can get hold of personal details, pin numbers and credit card information. Once they have this information it only takes a very short time for them to steal money from an account and then disappear into the Internet. Online fraud is a growing problem with many people falling victim to emails pretending to be from legitimate sources such as the customers bank. Responding to these emails is a sure-fire way of running up a credit card bill very quickly or seeing a bank account drain of funds before your eyes.
The simple truth is that it is relatively easy to protect yourself, both online and in daily life. No bank will ever legitimately request a customer to confirm details via email or by telephone, and so you can be sure that any emails that do ask for sensitive information are scam or phishing emails. The basic rule is never respond to these emails and if you are unsure about the authenticity of an email (as some of them are now extremely convincing), contact your bank directly. The advent of online auction sites and Internet purchasing has opened up another route to a wealth of private details for high-tech fraudsters, but again it is relatively easy to protect yourself and your details from being scammed. By simply checking that the site is a secure one (indicated by the https section of the URL and a padlock icon in the bottom right hand corner of the screen), online purchasing should be safe. If either of these indicators is missing then the site is an unsecured one and your details are vulnerable.
21% of credit card fraud is the result of details being skimmed when a credit or debit card is inserted into an automatic cash dispenser or pin reader. Although these high-tech methods are becoming increasingly difficult to detect, any ATM machine or pin reader that looks suspicious (has damage around where the card is inserted, for example) should be avoided and your suspicions reported to the bank. Simply placing your hand over the keypad when typing in your pin number should shield it from prying eyes or secreted cameras.
Many people make the mistake of having one password for all their secure sites or Internet activities. Once the fraudsters know this password it is easy for them to obtain all the information they need to steal an identity. By ensuring that your passwords are secure you can make life much more difficult for opportunist fraudsters. These are all simple actions that anyone can employ to defeat the online criminal, but what about the banks? Many people worry that their details are not being kept secure by institutions and financial lenders (especially after a plethora of reports about sacks full of personal details left out casually for rubbish collection by high street banks).
After a flurry of reports about personal banking details being left in rubbish bags for refuse collection, the banks and financial institutions are now much more conscientious over the security of their customers details. They are also working much more closely with the Police serious fraud and high-tech units in an attempt to combat the rising tide of fraud and identity theft. It is a continuous battle as many of the fraudsters operate outside the UK. But by pulling together in a concerted effort perhaps the UK can shake off its reputation of being an easy target for the cyber-criminals and fraudsters and secure the general publics details from prying eyes.
These frightening statistics show how fraudsters are making life difficult for innocent people and just how easily they can get hold of personal details, pin numbers and credit card information. Once they have this information it only takes a very short time for them to steal money from an account and then disappear into the Internet. Online fraud is a growing problem with many people falling victim to emails pretending to be from legitimate sources such as the customers bank. Responding to these emails is a sure-fire way of running up a credit card bill very quickly or seeing a bank account drain of funds before your eyes.
The simple truth is that it is relatively easy to protect yourself, both online and in daily life. No bank will ever legitimately request a customer to confirm details via email or by telephone, and so you can be sure that any emails that do ask for sensitive information are scam or phishing emails. The basic rule is never respond to these emails and if you are unsure about the authenticity of an email (as some of them are now extremely convincing), contact your bank directly. The advent of online auction sites and Internet purchasing has opened up another route to a wealth of private details for high-tech fraudsters, but again it is relatively easy to protect yourself and your details from being scammed. By simply checking that the site is a secure one (indicated by the https section of the URL and a padlock icon in the bottom right hand corner of the screen), online purchasing should be safe. If either of these indicators is missing then the site is an unsecured one and your details are vulnerable.
21% of credit card fraud is the result of details being skimmed when a credit or debit card is inserted into an automatic cash dispenser or pin reader. Although these high-tech methods are becoming increasingly difficult to detect, any ATM machine or pin reader that looks suspicious (has damage around where the card is inserted, for example) should be avoided and your suspicions reported to the bank. Simply placing your hand over the keypad when typing in your pin number should shield it from prying eyes or secreted cameras.
Many people make the mistake of having one password for all their secure sites or Internet activities. Once the fraudsters know this password it is easy for them to obtain all the information they need to steal an identity. By ensuring that your passwords are secure you can make life much more difficult for opportunist fraudsters. These are all simple actions that anyone can employ to defeat the online criminal, but what about the banks? Many people worry that their details are not being kept secure by institutions and financial lenders (especially after a plethora of reports about sacks full of personal details left out casually for rubbish collection by high street banks).
After a flurry of reports about personal banking details being left in rubbish bags for refuse collection, the banks and financial institutions are now much more conscientious over the security of their customers details. They are also working much more closely with the Police serious fraud and high-tech units in an attempt to combat the rising tide of fraud and identity theft. It is a continuous battle as many of the fraudsters operate outside the UK. But by pulling together in a concerted effort perhaps the UK can shake off its reputation of being an easy target for the cyber-criminals and fraudsters and secure the general publics details from prying eyes.
About the Author:
James Gladstone is a financial writer who has written articles for various popular websites. You can find out more information on the credit card topic here.
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