Brits put themselves at risk of credit card fraud
Thursday, 03 Nov 2005 08:41
Brits are making it far too easy for credit card fraudsters
The majority of Britons are placing themselves at risk of credit card fraud, Which? reports.
Overall, 60 per cent of the UK's cardholders are making elementary security mistakes, opening the door for those who would steal their card details for personal gain.
And this lax attitude is costing every cardholder £12 a year, as banks and card providers are forced to make back the money they lose through the carelessness of their customers.
Which? found that:
23 per cent of cardholders use the same pin number for different accounts.
21 per cent would give their account number to a caller claiming to be their bank or credit card company.
19 per cent do not check their bank or credit card statements.
And these gaps in security are being gleefully exploited by criminals, with £500 million taken from cardholders last year - up a massive 600 per cent since 1999.
Cardholders are generally not liable for their losses - except in cases of gross negligence - however, becoming a victim so so-called identity fraud can have serious consequences.
A fraudster's actions can seriously harm your credit rating, making it nigh-on impossible to take out credit cards, mortgages, insurance policies or even switch bank accounts until action is taken to clear your credit report.
Which? also thinks banks need to improve their anti-fraud measures - for example by sending out unactivated cards, which cardholders then activate by disclosing security details - but it is still urging the general public to take simple measures to protect themselves.
The consumer watchdog advises Britons to:
Never divulge full details of a password or pin to callers who say they are from the bank or police.
Regularly check statements for suspicious transactions.
Dispose of card receipts and other financial documents by shredding them.
Delete any suspicious looking email that claims to be from a bank or card company and asks for security details.
"By taking some basic precautions you can dramatically reduce your chances of becoming a victim of card fraud," said Malcolm Coles, Which? editor.
"But banks themselves are falling down on security too. They should be doing much more to cut this type of crime, rather than just passing the costs on to their customers."