Millions still at risk of credit card fraud

Wednesday, 10 January 2007 12:00

Millions of Britons are still putting themselves at risk of credit card fraud despite repeated warnings, a new report reveals.

Data from Morgan Stanley shows 40 per cent of UK residents are still throwing away bank and credit card statements without shredding them, with this number rising to 59 per cent of under-30s.

This practice simply hands information to any potential fraudster, who can pick up and go through the details on the statements after they have been thrown out and impersonate the credit card holder to take out new cards or loans in their name.

"The findings fuel concerns that Britons are not taking heed of warnings to protect themselves," said Patrick Muir, Morgan Stanley Credit Card marketing director.

"There has been a lot of attention placed on the issue of ID theft but, worryingly, many people still don't believe it could happen to them.

"Our fraud department deals with a number of cases every year and many victims do not realise they have fallen prey to fraudsters for many months.

"This has lengthy and far reaching consequences, so we would suggest taking out an ID theft insurance policy to safeguard against this headache."

But while insurance policies can be valuable in helping identify fraud early and assisting victims - some policies are not as comprehensive as they seem, so do check the small print.

Often, regularly checking credit reports, as long as this is kept up, can prove as effective and cheaper than many ID theft insurance policies.

After throwing away complete statements, the next most common risk Britons are taking is using the same passwords or pins for multiple bank accounts and credit cards - this means that any fraudster working out one pin number or password can gain access to several accounts.

Some 27 per cent of the population use the same password/pin for multiple accounts - rising to 31 per cent of under-30s.

Other common mistakes include writing down or storing passwords or pins on PCs or laptops (12 per cent of the population), sharing personal information in a public place (11 per cent), and sending bank details over unencrypted emails (five per cent).

Morgan Stanley's top tips for avoiding ID fraud in 2007:

• Always shred personal details before throwing them in the rubbish, preferably with a cross-cut shredder.
  
• Do not share or record pin and account numbers in places where others may find them.
  
• When shopping online, always check the site is secure (you will see https: on the address line of your browser).
  
• When asked to supply personal details over the phone or email, be confident you know who you are really supplying this information to.
  
• Check your bank and credit card statements for alien transactions.
  
• When you are shopping or eating out, try and keep your card in your sight at all times so it cannot be cloned.

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